Certified Federal Contract Manager (CFCM) Practice Exam

An unauthorized commitment can become binding if ratified by an appropriate authority. This means that even if a commitment was made without proper authorization, it can be validated and made enforceable if someone with the proper authority reviews the situation and formally approves the transaction.

The ratification process typically involves a higher-level official who has the discretion to acknowledge and accept the situation, allowing the agency to recognize the obligation despite the initial lack of authority. This is important to ensure accountability and proper management of federal resources while still allowing some flexibility in situations where commitments may need to be honored for the sake of continuity in operations.

The other scenarios mentioned would not provide the necessary legal framework to render an unauthorized commitment binding. For example, mutual agreement between parties or a specific contract value threshold does not equate to proper authorization, nor does filing for review automatically confer legitimacy to an unauthorized action. This highlights the unique role of the authorized individual in the ratification process, ensuring compliance with federal regulations and oversight.