v J Gross and Sons Inc also illustrates the idea Finally even if I sign a

V j gross and sons inc also illustrates the idea

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Industrial Molded Plastic Products, Inc. v. J. Gross and Sons, Inc. also illustrates the idea. Finally, even if I sign a contract with no authority at all, you can still be bound by it if you ratify or affirm the deal. Express ratification occurs if you deliberately decide to be bound by the agreement and give notice of that intention. Implied ratification exists when your words or conduct seem to indicate that you intend to be bound by the deal. There are a few specific requirements for ratification: A) Principal can only ratify if the agent, in dealing with the third party, had indicated that he or she is acting for a principal and not on his/her own behalf. B) At the time of ratification the principal must have known or had a reason to know the essential facts about the transaction. C) Ratification must occur within a reasonable time after the principal learned of the transaction. D) If the principal ratifies, he or she must ratify the entire transaction rather than ratifying that part that is to his or her advantage and repudiating that which is to her or her disadvantage E) The transaction must be legal, and the principal must have the capacity required to be a party to the transaction F) If any formalities (such as a writing) would have been required for original authorization, the same formalities must be met in ratifying the transaction. 3) Agent and Third Party Contractual Liability Usually, when agents sign agreements on behalf of principals, the agents are not personally responsible for honoring the agreements. If an agent violates any of the duties owed to the principal, he or she naturally is liable for the damages caused by the breach. The agent who exceeds his/her actual authority is personally responsible unless the principal ratifies the unauthorized actions. If the agent personally assumes liability or a particular transaction then he or she is obviously responsible. If the agent, in dealing with a third party, fails to disclose that he or she is acting for a principal or fails to disclose the principal’s identity, the agent is personally responsible to the third party.
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However, the following exceptions exist: When agents sign an agreement without any type of authority, they can be liable to a third party. When agents act with only apparent authority, their liability is to the principal. Agents can choose to assume liability for an agreement. Agents are usually personally liable: if they make a contract and fail to notify the third party that they are acting on behalf of an agent at all. if they do not disclose the principal's identity. if they claim to be acting on behalf of a principal that does not exist. Liability of the Third Party: A) If the third party fails to live up to his or her part of the bargain, that person will be liable to the principal.
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