Which statement correctly describes ratification in agency law?

• A. Ratification is the principal's late consent to be bound by an agent's act performed without authority, effective from inception.
• B. Ratification requires express approval only after the contract is performed.
• C. Ratification is binding only if the third party consents.
• D. Ratification can occur even without acceptance of liability.

Answer: (A)

Ratification happens when a principal decides to be bound by an act of an agent that was outside the agent’s authority. This decision is retroactive: once ratified, the contract is treated as if the agent had authority from the moment the act occurred. The principal’s ratification can be express or implied and usually requires knowledge of all material facts and a clear intent to be bound. It does not hinge on the third party’s consent. And once ratified, the principal accepts liability to the third party under that contract. This matches the description of a late consent by the principal to be bound by an unauthorized act, with effect from inception.