What does the term 'ratification' in agency law refer to?

The term 'ratification' in agency law specifically refers to the approval of actions performed by someone without prior consent. This concept is crucial in understanding how agency relationships operate, as it allows a principal to affirm actions taken by an agent that were initially unauthorized.

When a principal ratifies an agent’s actions, they effectively accept those actions as though they were authorized from the outset. This can occur in various situations, such as when an agent makes a purchase on behalf of a principal without explicit approval, and then the principal later chooses to accept the transaction. By ratifying the agent's actions, the principal assumes responsibility for those actions, legitimizing them under agency law.

Understanding this concept helps clarify the dynamics of agency relationships and emphasizes the importance of both consent and approval in contractual obligations. This principle allows for flexibility and supports the practicalities of real estate transactions, where agents often make decisions on behalf of their clients in a fast-paced environment.