For a Ratification to Be Effective,the Principal

question 69

Multiple Choice

For a ratification to be effective,the principal:

• A)must have knowledge of all material facts concerning the transaction.
• B)must communicate her intent to ratify to the third party.
• C)must have been in existence when the act was done.
• D)Both (a) and (c) are correct.

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Definitions:

Finance Company

A business that specializes in providing loans to consumers and investing in securities.

Conditional Sale

A sales agreement that includes conditions that must be met for the sale to be finalized or for the title of the property to be transferred to the purchaser.

Compounded Annually

Compounded annually refers to the process where interest is added to the principal sum once per year, resulting in the growth of the initial amount over time.

Retirement Fund

A financial arrangement designed to provide individuals with an income or pension during retirement.