An agent bought goods for a principal without actual authority, intending to buy them for himself if the principal did not approve. He did not tell the seller he was acting for anyone. In Keighley, Maxsted & Co v Durant, why could the principal not ratify the contract?

Correct answer: C) The agent had not purported to act as agent for a named or identifiable principal when contracting

Explanation

A principal can ratify only a contract that the agent purported to make on its behalf. In Keighley, Maxsted v Durant the agent contracted in his own name without disclosing that he was acting for anyone, so an undisclosed principal could not ratify. Ratification by definition occurs after the contract, and contracts for goods can be ratified where the conditions are met.