Agency is a relationship based on an agreement authorizing one person, the agent, to act for another, the principal. For example an agent may negotiate and make contracts with third persons on behalf of the principal. If an agent tries to do an act for his principal that he is not specifically authorized to do, the principal has the choice of ignoring the transaction or ratifying it. Generally, even an unauthorized act may be ratified.
Arizona Ratification by Principal of Agent's Execution of Contract is a legal process that validates and confirms a contract executed by an agent on behalf of a principal. This form of ratification provides the principal with an opportunity to affirm or accept the agent's actions and take on the rights and obligations prescribed in the executed contract. In Arizona, Ratification by Principal of Agent's Execution of Contract can occur in various scenarios, including real estate transactions, business agreements, and personal contracts. The state recognizes two types of ratification: express ratification and implied ratification. 1. Express Ratification: Express ratification occurs when the principal explicitly approves and confirms the agent's execution of the contract. This type of ratification often takes the form of a written or verbal statement in which the principal acknowledges their intention to be bound by the terms of the contract. Express ratification leaves no room for ambiguity and provides clear evidence of the principal's intent to be bound. 2. Implied Ratification: Implied ratification, on the other hand, occurs when the principal's actions or conduct imply agreement with the agent's execution of the contract. While implied ratification does not involve a direct statement from the principal, it can be inferred from their behavior or acceptance of the benefits resulting from the executed contract. The principal's failure to disapprove or reject the agent's actions within a reasonable time can also indicate implied ratification. Both express ratification and implied ratification have legal significance in Arizona courts. They serve as mechanisms to validate a contract executed by an agent, binding the principal to its terms and conditions as if they had signed the document themselves. Ratification also allows the principal to enjoy the benefits of the contract, such as rights, privileges, and potential remedies, while assuming the associated responsibilities. It is essential for principals in Arizona to understand the implications of ratification by principal of agent's execution of contract. By ratifying the contract, the principal assumes liability for any contractual obligations or breaches committed by the agent. Conversely, the agent's authority to act on behalf of the principal is bolstered through ratification, solidifying their role and responsibilities within the contractual relationship. In conclusion, Arizona Ratification by Principal of Agent's Execution of Contract enables principals to validate contracts executed on their behalf by agents. This legal process involves express and implied ratification, whereby principals can explicitly or tacitly approve the agent's actions. Understanding these different types of ratification is crucial for both principals and agents in Arizona, as they determine the legal validity and consequences of contract execution.
