Estoppel and Ratification Examples

Creation Agency - Crunchbase Company Profile & Funding


Simple example: For years, I have had my secretary order and pick up a pizza. I pay when I’m in the next week. I can’t simply tell the restaurant that I’m not paying for last week’s pizza. That’s estoppel. I could tell them I won’t be paying any more. That’s a simple termination.


Bob goes out as an agent, buys 5 houses in a row in his own name. Bill the builder takes over the project, 3 months later. He ratifies Bob’s purchase 3 months earlier, but, of course, Bill had never even heard of Bob then. He takes over the deal effective 3 months ago “as if” he were the Principal at that time. This is not an Assignment which would be effective 3 months later. This is Bill “ratifying” (after the fact), that Bob was indeed his agent some 3 months ago.

Brian Madigan LL.B., Broker

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