A principal is contractually bound to a third party if the agent acts without any authority but the principal ratifies the contract.

Name: A principal is contractually bound to a third party if the agent acts without any authority but the principal ratifies the contract.
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Question

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If an agent acts without authority, the principal can choose to ratify the contract, thereby accepting the terms and becoming bound to the third party as if the agent had authority from the start.

A Principal Is Contractually Bound to a Third Party If