Before a Principal Can Ratify a Contract, the Principal Must

question 15

True/False

Before a principal can ratify a contract, the principal must know all of the material facts involved in the deal.

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Definitions:

Partnership Business

An authorized form of enterprise operated by two or more individuals who equally contribute to management and benefit from profits.

Ownership Interest

A stake or share in a company or property, representing a portion of the ownership.

Management Rights

These are the legal authorities and powers that the management of an organization holds to operate and make decisions for the business.

Base Rent

The minimum amount of rent due under a lease agreement, not including costs such as utilities, maintenance, and other operating expenses.