Question

Cheryl knows that Jake is looking to buy a new scooter. She sees one that would be perfect and negotiates with the seller on Jake’s behalf. She signs a contract for the scooter using her name but clearly indicating that she is working for Jake. She actually is not. When Jake sees the scooter, he loves it and agrees to pay the contract price. If agency exists in this situation, it is agency by:______.

a. operation of law.
b. estoppel.
c. agreement.
d. ratification.

Answer 1

d. ratification

Step-by-step explanation:

Ratification refers to making a contract legal through the consent. Basically when Jake agrees to accept the scooter and pay the contract price, as negotiated by the Cheryl.

Even though Cheryl has acted as an agent of Jake in front of the seller of scooter, even when Jake had not made any contract making that agent relationship valid.

This clearly embarks that the only way in which this contract can be validated is through ratification by Jake.