Which statement about ratification is the exception to the typical requirement that third-party consent is needed?

Which statement about ratification is the exception to the typical requirement that third-party consent is needed?

• A. The third party's consent to ratification must be obtained by the principal.
• B. There must have been a representation of agency by the agent to a third party.
• C. The principal must accept the agent's transaction in its entirety.
• D. Once ratification has been made, a contract is in effect.

Answer: (A)

The main idea here is that ratification happens when the principal, after the fact, approves an act done by an agent who had no authority at the time. Once the principal ratifies, the contract becomes binding as if the agent was empowered from the beginning. Crucially, this process does not require the third party’s consent to ratification. The principal’s own approval is enough to bind the parties. So the statement that the third party’s consent to ratification must be obtained by the principal is the exception to the usual rule. In most cases, third-party consent isn’t needed for ratification; it’s the principal’s acceptance that matters. The other points align with how ratification typically works: there was an agency representation to the third party, the principal must accept the entire transaction, and once ratified, a contract is in effect.

The main idea here is that ratification happens when the principal, after the fact, approves an act done by an agent who had no authority at the time. Once the principal ratifies, the contract becomes binding as if the agent was empowered from the beginning. Crucially, this process does not require the third party’s consent to ratification. The principal’s own approval is enough to bind the parties.

So the statement that the third party’s consent to ratification must be obtained by the principal is the exception to the usual rule. In most cases, third-party consent isn’t needed for ratification; it’s the principal’s acceptance that matters. The other points align with how ratification typically works: there was an agency representation to the third party, the principal must accept the entire transaction, and once ratified, a contract is in effect.