Agency by RatificationA situation in which a person or company inaccurately claims to be an agentfor another person or company and conducts some act in that capacity, but which the principal(who is not actually a principal) later accepts and recognizes. Because the agent is not actually an agent, any act he/she conducts on behalf of the principal ordinarily would be invalid; however, agency by ratification exists because the "principal" confirmed the act.Agency by estoppels- an agency that is not created as an actual agency by a principal and an agent but that is imposed by law when a principal acts in such a way as to lead a third party to reasonably believe that another is the principal's agent and the third party is injured by relying on and acting in accordance with that belief. A principal has a duty to correct a third party's mistaken belief in an agent's authority to act on the principal's behalf. If the principal could have corrected the misunderstanding but failed to do so, he or
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