BALW20150 Chapter 33: Chapter 33 Notes Part 3
6 Jan 2019
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Agent must have acted on behalf of an identified principal who subsequently ratifies the action: 2. Principal must know all of the material facts of transaction if principal ratifies without knowing all facts, principal can. Principal must affirm the agent"s act in entirety: 4. Principal must have legal capacity to authorize the transaction at the time agent engages in the act and at the time principal ratifies third party must also have legal capacity to engage in transaction: 5. Principal"s affirmation must occur before the third party withdraws transaction: 6. Principal must observe same formalities when ratifying the act as would have been required to authorize it initially. Section 33. 2: liability for contracts, liability for contracts formed by agents depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized, principals are classified as, 1. Disclosed principal: identity is known by the third party at time contract made by agent: 2.
