AgencyIntermediateAlaska Exam

An agent's authority to bind a principal is limited to:

AAny action the agent believes is in the principal's best interest, under this approach
BOnly actions expressly authorized in writing by the principal
CActions expressly authorized, implied by circumstances, or ratified by the principalCorrect
DActions authorized by the Alaska Real Estate Commission

Why Actions expressly authorized, implied by circumstances, or ratified by the principal Is Correct

Answer C: Actions expressly authorized, implied by circumstances, or ratified by the principal

An agent's authority includes express authority (specifically granted), implied authority (necessary to carry out express authority), and apparent authority (ratified after the fact). The agent cannot unilaterally expand their own authority.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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