Multiple choice

Which of the following statements is correct about ratification?

  1. It allows a principal to accept the acts of an agent after a contract has been negotiated for which the agent lacked authority.

  2. It occurs when the agent negotiates a contract on a principal's behalf.

  3. It allows the correction of an incorrect term of a contract.

  4. It means that the agent and not the principal is responsible for the contract.
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A Correct answer
Explanation

(1) Ratification allows a principal to accept the acts of an agent after a contract has been negotiated for which the agent lacked authority.

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