What does authority by ratification mean?

Authority by ratification occurs when a principal approves or validates the actions of an agent that were performed without prior authorization. In this scenario, the principal retroactively grants the agent the authority to act on their behalf, effectively endorsing the actions taken even if those actions were initially unauthorized. This concept is important in agency law because it allows principals to accept the results of actions they did not initially consent to, which can help uphold agreements or transactions that may benefit the principal.

In this context, the correct answer emphasizes the after-the-fact approval aspect of authority by ratification, highlighting that the agent acted without permission initially but gained legitimacy once the principal ratified those actions. This is distinct from other types of authority, such as express authority, which is granted before actions are taken, thus establishing a clear difference between pre-authorization and post-authorization scenarios.