If a Principal Behaves as If He Intended to Ratify

question 102

True/False

If a principal behaves as if he intended to ratify an unauthorized agreement between his agent and a third party, a court will find that implied ratification has occurred.

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Definitions:

Multiple Sourcing

A procurement strategy that involves buying a particular product from several suppliers to reduce dependency on any single supplier and to increase competition and flexibility.

Supplier Capacity

The maximum amount of goods or services a supplier can produce or provide within a given timeframe.

Request for Quotation (RFQ)

A document issued by a buyer to suppliers, inviting them to submit a bid specifying the pricing and terms under which they would commit to sell a product or service.

Strategic Purchase

The acquisition of goods or services with a long-term perspective, considering factors such as cost, quality, and supplier relationships for competitive advantage.