Maryland Ratification by Principal of Agent's Execution of Contract

• Category: Contracts - Ratifications
• State: Multi-State
• Control #: US-01439BG
• Format: Word; Rich Text

Description

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.

Maryland Ratification by Principal of Agent's Execution of Contract refers to the legal process through which a principal in Maryland validates or approves a contract that was executed by their agent on their behalf. This ratification implies that the principal acknowledges and accepts the terms and obligations set forth in the contract, even though they were not personally involved in its initial execution. Ratification is a crucial legal concept as it has the power to retroactively bind the principal to a contract that was initially created and signed by an agent without their direct involvement. In the state of Maryland, the principle of ratification by the principal of an agent's execution of a contract is governed by specific laws and regulations to ensure the validity and enforceability of such contracts. There are different types of Maryland Ratification by Principal of Agent's Execution of Contract: 1. Express Ratification: This type of ratification occurs when the principal explicitly confirms their intention to be bound by the contract signed by their agent. Express ratification can be made orally or in writing, as long as it clearly indicates the principal's acceptance and approval of the contract terms. 2. Implied Ratification: Implied ratification takes place when the principal's actions or behavior indicate their intention to uphold and be bound by the contract. Although not explicitly communicated, the principal's conduct implies their acceptance of the agent's actions and execution of the contract. It is important to note that ratification by the principal generally binds the principal to all provisions of the contract, including any rights, responsibilities, and obligations. However, there may be exceptions or limitations based on the specific circumstances and terms of the contract. In summary, Maryland Ratification by Principal of Agent's Execution of Contract involves the process by which a principal validates a contract executed by their agent. Express and implied ratification are the two main types and are guided by Maryland's legal framework to ensure the enforceability of such contracts.