Ratification · Select one

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Kestrel Event Rentals, LLC is managed by its sole member, Priya Nair. In April 2026 a part-time employee, Jonah Weir, who had no authority to sign contracts, signed a twelve month agreement in Kestrel's name with Tri-County Storage for a warehouse bay at $2,900 per month, with a clause making Kestrel liable for the full term if it left early. Jonah kept the document and told Priya only that he had "found us some storage space at a good price." Priya asked whether there was any long term commitment, and Jonah said no. Priya said "great," moved Kestrel's tents into the bay, and paid rent for May and June. In July, Priya found cheaper space, read the agreement for the first time, and told Tri-County that Kestrel was leaving. Tri-County sues Kestrel for the remaining ten months of rent.

Did Kestrel ratify the twelve month agreement?

Choose one answer.

A. Yes, because Kestrel used the bay and paid rent for two months, and accepting the benefits of a contract ratifies it regardless of what the principal knew.B. Yes, because a principal is charged with knowledge of the terms of any document signed in its name by an employee.C. No, because ratification requires a written affirmance directed to the third party, and Priya never sent one.D. No, because Priya accepted the benefits without knowledge of the material facts, having asked about the term and been told there was no long term commitment.

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Question ID: business-associations-mcq-c1-04 · Report an issue with this ID · Coverage and review status