Which of the Following Is True About Ratification

question 18

Multiple Choice

Which of the following is true about ratification?

• A) It releases the principal from liability to the third person.
• B) It gives the agent the same right to compensation that he or she would have had if there had been prior authorization.
• C) It requires the principal to have full understanding of the legal significance of all material facts.
• D) It is inferred by a court from the fact that the agent accepted the benefits of an unauthorized contract.

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Definitions:

Accounts Payable

The balance of money owed to suppliers for goods or services purchased on credit and not yet paid.

Supplies Expense

The cost incurred from consuming supplies in the operations of a business, recognized as an expense when used rather than when purchased.

Billing

The process of issuing invoices to customers for goods or services provided.

Fees Earned

Revenue generated from providing services.