SQE Law of agency, contract and negligence question: ratification of an unauthorised act

EAA SQELaw of agency, contract and negligence

Which of the following statements about ratification of an unauthorised act are correct? (i) The person who acted must have claimed to act on behalf of the principal. (ii) The principal may ratify the terms that benefit him and reject the rest. (iii) Ratification can be implied from the principal's conduct, such as accepting the benefit. (iv) The principal should know the material facts when ratifying.

A (i) and (ii) only
B (i), (iii) and (iv) only
C (ii) and (iii) only
D (ii), (iii) and (iv) only

Show the answer and explanation

Answer: B. (i), (iii) and (iv) only

Answer: (i), (iii) and (iv) only. (i) True. An undisclosed principal cannot ratify; the agent must have purported to act for him. (ii) False. The principal must adopt the whole transaction. He cannot keep the favourable parts and reject the rest. (iii) True. Ratification may be express or implied, for example by knowingly accepting the benefit of the contract. (iv) True. Ratification is effective only if the principal acts with full knowledge of the material facts (or clearly adopts the act whatever they are). Rule: Ratification requires an agent who claimed to act for the principal, a principal with capacity, adoption of the whole act, and knowledge of the material facts. It may be express or by conduct. Source: Syllabus 3.4.1.4 (ratification); EAA, A Study Guide to Estate Agency Law and Practice, Part 3; as at Oct 2026

Common mistake

Believing a principal can ratify the good parts of an unauthorised deal and reject the rest.

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An original question written to the published SQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.