BTC1110

[zool3]

I don't understand the term "hold out" and "ratification" someone please explain with examples

[Furbob]

I'm pretty sure I covered it somewhere in my notes (this was from last semester)

[Fyrefly]

In a nutshell:

Hold Out: Acting in a way that suggests you've been empowered by a company to act as its agent for certain matters, but you actually don't have that authority.

Ratification: Where a second person who DOES have authority to act as a company's agent says or does something that makes the involved third party believe that the first person wasn't just "holding out", but is actually an authorised agent of the company. The legal effect of ratification is to make a contract enforceable.

[zool3]

thanks!!