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RULES TO BE APPLIED

A principal will be bound by the acts of its agent acting with authority. Authority can
be either actual or apparent.
Actual authority is authority that is conferred upon the agent by the principal.
Apparent authority can be shown by 1.Principal holding out an agent through
affirmative action; 2. Principal failing to act when principal has a duty to do so; or 3.
Principal negligently permits the person to be in a position where he appears to
have authority.
Even if an agent lacks authority to act on behalf of the principal, if principal ratifies
an agreement made by the agent with a third party, then the relationship exists.
To ratify a contract a principal must affirm the transaction.
Principal cannot ratify a contact after a third party has withdrawn assent. To ratify a
contract a principal must affirm the transaction. Ratification need not be express
but the principal must clearly show he intends to be bound.
Ratification requires principal to be competent and of legal age; know material
facts; accept entire transaction, unless transactions are severable.w