Apparent Agreement

The procuring entity is free to ratify an unauthorized agreement concluded by a representative. Ratification is the explicit or implicit act of the principal to accept the agent`s act after the unauthorized act. Ratification by the client leads to such an act becoming binding on the third party. Note that, without ratification by the client, the third party is not bound by the unauthorized agreement drawn up by an agent without apparent authority until the client ratifies it. Whereas in the situation of an act performed by an agent with a supposed (or obvious) authority, the contracting authority and the third party are bound from the moment the contract is concluded by the agent and the third party.