With Respect to Ratification,which One of the Following Statements Is

question 142

Multiple Choice

With respect to ratification,which one of the following statements is true?

• A) Ratification is the act of a principal approving a contract when her agent has exceeded his authority or acted without authority, and such approval gives the agent authority retroactively to the time the agent made the contract.
• B) When an agent, without the authority of his principal, has entered a contract for three computers and two printers, and the principal wants the computers but not the printers, he can ratify part of the contract.
• C) The only limitation on a principal's right to ratify is the power of the third party to set a time limit within which that ratification must take place.
• D) Irving has been given authority to contract for the purchase of 1000 jade tiles at up to $18 a piece. Instead, he buys from Cassiar Jade Co. 1200 jade tiles at $18.25 a piece. When Cassiar Jade finds out that Irving has exceeded his authority, it sells the tiles to Interior Designs Co. After Cassiar has sold the tiles, Irving's principal can no longer ratify the contract.
• E) The ratification by the principal must be in writing to be effective.

---

Definitions:

Interest Receivable

An accounting term for interest that has been earned but not yet received in cash.

Unearned Service Revenue

Income received by a company for services yet to be performed, treated as a liability until the services are provided.

Supplies Expense

The cost associated with consuming supplies over a specific accounting period, impacting the income statement.

Accrued Interest Expense

The amount of interest that has been incurred but not yet paid during a particular period.