Question

T makes a written offer to K to lease certain property to P, which K accepts on behalf of P. K did not have actual authority to accept the offer on behalf of P. T withdraws the offer. P then ratifies the K's acceptance. Does T have an agreement with P?

		Yes. The ratification will operate retrospectively.
		No. Ratification does not operate retrospectively.
		Yes. At the time of acceptance K had actual authority.
		No. At the time of acceptance K did not have implied authority.

Answer 1

The correct answer is :- Yes. The ratification will operate retrospectively.

Explanation:- If a person purports to contract as an agent but at the time has neither actual or apparent authority, the principal may later ratify and take on the contractual rights and liabilities. This in effect is a retrospective grant of actual authority to the agent, and the principal agent relationship is then deemed to have existed as from the time of the contract.