ICANBusiness LawLaw of Agency2022

Chief Adebayo instructed Mr. Chidi to purchase a commercial property in Lagos. Mr. Chidi negotiated and executed the contract of sale with Apex Properties Ltd in his own name, without disclosing to Apex Properties Ltd that he was acting as an agent for Chief Adebayo or any other principal. When Chief Adebayo subsequently learned of the transaction, he sought to ratify the contract. Under the Nigerian Law of Agency, which of the following statements correctly reflects the legal position regarding Chief Adebayo's attempt to ratify?

AChief Adebayo can validly ratify the contract because a principal may adopt any contract executed by his agent for his benefit.
BChief Adebayo cannot validly ratify the contract because an undisclosed principal cannot ratify a contract made by an agent who contracted in his own name.CORRECT
CChief Adebayo can ratify the contract only if Apex Properties Ltd provides written consent within 14 days of notification.
DThe contract is automatically void ab initio, depriving both Mr. Chidi and Chief Adebayo of any rights under it.
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Under the Nigerian Law of Agency (applying the doctrine established in Keighley, Maxted & Co. v. Durant), one of the essential conditions for a valid ratification is that the agent must contract explicitly as an agent for a named or identifiable principal. An undisclosed principal who was not disclosed at the time of contract execution cannot subsequently ratify a contract made by an agent acting in his own personal capacity.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Business Law questions

ICAN Business Law has thousands more questions like this — with Worked answers on every one.

Start practicing free →See all Business Law questions