What does ratification refer to in agency?

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Ratification in the context of agency refers specifically to the acceptance of an act or agreement after it has been executed, rather than before. This process allows a principal to confirm or approve an action taken by an agent that was not authorized at the time it was performed. Essentially, when a principal ratifies an action, they are agreeing to accept the consequences of the agent's actions, even if those actions were not formally approved beforehand.

In this context, it is important to understand how ratification validates the previous unauthorized actions. It creates a binding agreement retroactively, allowing both parties to benefit from the transaction that occurred. This concept is crucial in agency law, as it can provide legal backing to situations where an agent acted beyond their authority but where the principal finds the results favorable and thus decides to accept them afterward.

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