What distinguishes "ratification" from "revocation" in agency law?

In agency law, ratification and revocation serve distinct purposes and implications in the context of authority and obligations between the principal and the agent. Ratification refers to the principal's acceptance of an act performed by the agent that was initially unauthorized. When a principal ratifies an act, they retroactively endorse the agent's actions, thereby granting validity to what the agent has done. This acceptance may result in the principal being bound by the contract or obligations incurred as a result of the agent's actions.

On the other hand, revocation involves the principal's withdrawal of authority from the agent. It signifies that the agent can no longer act on behalf of the principal for future transactions or obligations. Revocation can lead to the disengagement of the agency relationship, where the agent is no longer empowered to bind the principal in any capacity.

Understanding this distinction helps clarify that ratification is about acceptance of actions taken by the agent, which can result in liability for the principal, while revocation is about the principal's decision to terminate the agent's authority, thereby withdrawing any liability associated with that agency relationship going forward.