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  • Post last modified:April 22, 2021
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Do you have questions like: what is agency by ratification? As an entrepreneur, you must know these governing company agent laws that are performed widely in all kinds of agencies, including advertising and marketing companies. To know about the terms and consequences of agency by ratification, keep reading.

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In order to answer the question of what is agency by ratification, let’s first understand the word ‘ratification’. The term ‘ratification’ translates to “the action of signing or giving formal consent to a treaty, contract, or agreement, making it officially valid”. Under certain circumstances, an unauthorized person may adopt the duties of an authorized agent or an agent might be asked to conduct his duties that are beyond his authority and control. Under these circumstances, the issue of agency by ratification arises. The person being ratified is referred to as ‘the principal’. There are certain company agent laws that ‘agency by ratification’ must adhere. As a business-owner, it is important to be aware of such things.

Company agent laws of Agency by ratification

What is agency by ratification? Company agent laws

If you own a business, you can perform ‘agency by ratification’ if you follow these company agent laws. It is your job to make sure that ‘the principal’ relates back, to the date the actual agreement between you and the third party was signed. The ratification itself would become a nullity if the principal fails to do that.

  • An agency by ratification is only valid if the person being ratified has given his/her consent to do the job.
  • When it comes to the consequences of ‘agency by ratification’,  ‘the principal’ has to act on the agent’s behalf. If he tries to act on his behalf, the principal cannot ratify. He can only perform the operation that was asked by the agent in question.
  • Answering the question of what is agency by ratification, a principal must have the legal competence of a person to enter into a valid contract. He should have the capacity to enter into a legal agreement and the competence to perform some act not just during the performance of his duties but also when he ratified such act of the agent.
  • Ratification has to be shown by the behavioral conduct of the agent on whose behalf it is done. He has to be accepting of the duties ‘the principal’ is performing on his behalf.
  • According to company agent laws, ‘the principal’ has to be present when the ratification act is over.
  • The principle must have thorough knowledge of the act he is entitled to perform.
  • When it comes to the question of what is agency by ratification, it is the duty of the principal to conduct the full operation on the agent’s behalf. He cannot repudiate before the act is over.
  • According to company agent laws, the act has to be performed in time without delay or missing of deadlines. A reasonable duration of time should be fixed by the principal and notified to the client.
  • The act of ratification cannot be performed if it has ill effects on the third party or the client.
  • The ratification has to relate back to the actual date when the contract was signed between the agent and the client. The principal has to perform is duties by keeping in mind the retrospect.  
  • According to company agent laws, the ratification act has to be recognized by a legal contract. If the legal contract is absent, the act done by the principal would not be validated. Only lawful businesses can perform agency by ratification.


‘The principal’ used in the process of ratification should be someone trustworthy and who actually knows the work. The consequences of ‘agency by ratification’ can take a wrong turn if ‘the principal’ in question is a shoddy person or does not know the work. Make sure ‘the principal’ knows the act thoroughly before he is ratified. You do not want this to turn into a legal battle after all!


Uni Square Concepts is an advertising agency located in New Delhi, India. By initiating The Uni Square Blog, we aim to provide a comprehensive portal where readers can educate themselves about the various aspects of advertising and marketing. The articles and blogs are written by our professional team of content writers, under the guidance of senior leaders of Uni Square Concepts including its CEO, Uday Sonthalia.