ICAEW BL · Chapter 6 · Question 3 of 10
Which of the following is NOT a requirement for a principal validly to ratify a contract made by an agent who had no authority?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The third party must consent to the ratification
Explanation
For ratification, the agent must have contracted as agent for a named or identifiable principal. That principal must have existed and had capacity at the time of the contract, and must ratify the whole contract within a reasonable time with full knowledge of the material facts. The third party's consent is not required, because ratification relates back to the date of the original contract.
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