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.
Kentucky Ratification by Principal of Agent's Execution of Contract refers to a legal concept that involves a principal approving or validating an agent's actions in executing a contract on their behalf. It is a way for the principal to give retroactive consent to an agent's actions and be bound by the terms of the contract. This type of ratification is important in scenarios where an agent acts without proper authorization or without an existing agency relationship with the principal. In Kentucky, there are different types of Ratification by Principal of Agent's Execution of Contract, which include: 1. Express Ratification: This occurs when a principal explicitly and directly approves the agent's acts and agrees to be bound by the contract. Express ratification can be made through oral or written communication or even through the principal's conduct that clearly demonstrates their intent to affirm the agent's actions. 2. Implied Ratification: In some cases, the principal's conduct may imply their approval of the agent's actions, even if they have not explicitly stated it. Implied ratification can be inferred if the principal accepts the benefits of the contract, knowingly acts upon it, or fails to repudiate the contract within a reasonable time after becoming aware of it. It is crucial to note that ratification by the principal does not require the principal to have knowledge of the agent's actions at the time of execution. Once the principal becomes aware of the agent's actions, they have the option to either ratify or reject the contract. If the principal decides to ratify, they become bound by the terms of the contract, as if they were a party to it from the beginning. Kentucky Ratification by Principal of Agent's Execution of Contract plays a significant role in maintaining the integrity and validity of contracts. It allows principals to either confirm or disavow an agent's actions, ensuring that the parties involved can rely on the agreements made. However, it is always advisable for principals to provide proper authorization and supervision to their agents to avoid potential disputes or the need for ratification.
