What is the process known as when an unauthorized action taken on behalf of a principal is later accepted?

The process referred to is ratification, which occurs when a principal accepts the actions taken by an agent or individual who acted without the authority to do so. This acceptance can happen explicitly, where the principal communicates their approval, or implicitly, through actions that indicate acceptance of the unauthorized act.

Ratification is significant in agency law because it legitimizes the actions taken by the agent, transforming what was initially an unauthorized act into a valid and binding agreement on behalf of the principal. For example, if an agent signs a contract that exceeds their authority but the principal later agrees to the terms and benefits from the contract, that agreement can be ratified, making it enforceable even though it was initially unauthorized.

This process highlights the importance of the principal’s consent and indicates that they are willing to take responsibility for the actions of their agent, even if those actions were not initially sanctioned.