Insights
28th October 2025
Subsequent Approval is Like Prior Authorization: A Jurisprudential Rule for Protecting Transactions.
The principle that “subsequent approval is like prior authorization” is a significant jurisprudential rule designed to stabilize transactions and protect the interests of third parties acting in good faith. The rule provides that:
If a person acts with respect to property they do not own and over which they have no authority, and the rightful owner subsequently approves this action, such approval confers the same legal effect as if the owner had authorized the act in advance.
Illustrative Example: If someone sells another person’s property without the owner’s permission, and the owner later ratifies the sale, the transaction becomes valid, and ownership transfers to the buyer as if the seller had been the owner’s legitimate agent from the outset.
This rule safeguards the rights of third parties and good-faith actors in transactions, reducing the risk of legal disputes arising from initially unauthorized acts.
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