Marley goes outside the duties of her agency in negotiating a business contract between her principal and a customer. Which of the following is true?

Question

Business

Riggs

7 October, 20:08

Marley goes outside the duties of her agency in negotiating a business contract between her principal and a customer. Which of the following is true?

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Answers (1)

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Orion Elliott · Answer 1

Answer: If the principal ratifies the contract Marley made, it must pay her for the work.

Explanation:

If the contract is ratified then Marley is entitled to her agency fee for making it happen because according to the law, if an agreement agreed upon outside the scope of an agent's authority is Ratified, the agreement is now the same as if the Agent acted within their mandate.

Ratification refers to the signing of a contract after discussions have taken place thereby making it official. If the Principal signed the contract with the customer regardless of if Marley went outside her agency duties or not, the Principal is now a party to the contract and therefore liable and they got into that contract due to the negotiation by Marley and must pay her.