AgencyIntermediateAlaska Exam

Under Alaska agency law, ratification of an unauthorized act by an agent occurs when:

AThe agent acts outside their authority but the principal later approves the actCorrect
BThe Commission approves an agent's conduct after a complaint, under this approach
CA court enforces an unauthorized contract against the agent
DBoth parties agree to cancel an unauthorized transaction

Why The agent acts outside their authority but the principal later approves the act Is Correct

Answer A: The agent acts outside their authority but the principal later approves the act

Ratification occurs when a principal learns of an unauthorized act taken by the agent and subsequently approves (ratifies) it. The principal's after-the-fact approval makes the act binding as if it had been authorized from the beginning.

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.

Key Agency Terms in This Question

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