AgencyIntermediateArizona Exam

The doctrine of 'ratification' in Arizona agency law allows a principal to:

ARevoke the agent's existing authority immediately when the agent has exceeded the scope of the written agency agreement
BRetroactively approve an agent's unauthorized act, making it binding as if it had been authorized from the beginningCorrect
CModify the terms of an unauthorized transaction after the fact by issuing a written ratification that corrects the agent's authority deficiency
DConfirm an existing agency relationship for a new transaction without requiring a new written authorization from the principal

Why Retroactively approve an agent's unauthorized act, making it binding as if it had been authorized from the beginning Is Correct

Answer B: Retroactively approve an agent's unauthorized act, making it binding as if it had been authorized from the beginning

Ratification allows a principal to retroactively approve an agent's unauthorized act. The principal must ratify with full knowledge of the facts and cannot ratify only part of an unauthorized transaction.

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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