Stanton exceeded her actual authority when she concluded an agreement with Nilworth Corp. on behalf of Lax Corp. If Lax wishes to ratify the contract with Nilworth, which of the following statements is true?
A. Lax must notify Nilworth that Lax intends to ratify the contract.
B. Stanton must have acted reasonably and in Lax's best interest.
C. Stanton must be a general agent of Lax.
D. Lax must have knowledge of all material facts relating to the contract at the time it is ratified.
Answer: D. Lax must have knowledge of all material facts relating to the contract at the time it is ratified.
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