Definition: is a relationship created between two parties when an individual, posing as an agent of a company while not being one, operates in their name, with the operation later being approved by the company. As the person in question isn’t an official agent such an act would be illegal, but since the firm approved his action, the principal of agency by ratification takes effect, and the operation gains legal status.
In a Sentence:
Even though Michael wasn’t an agent of Terraria, he hoped that they would approve his actions and an agency by ratification relationship would be established between them.
The directors debated for hours on end about whether agency by ratification should be created with Clark Reendow, but in the end, the fact that he went behind the company’s back outweighed the potential revenue from the deal he has secured.
Agency by ratification was activated when Bloomstage recognized the deal made by Mr. Lewinston and Corbrey and Lammel.
Synonyms and related words: agency law, general agent, agency by estoppel, ratification, special agent