Agency
Under Arizona agency law, ratification of an agent's unauthorized act occurs when:
AThe principal sues the agent for acting without authority
BThe principal knowingly accepts the benefits of the unauthorized act✓ Correct
CA court order forces the principal to honor the act
DA third party refuses to acknowledge the agent's act
Explanation
Ratification occurs when a principal, with full knowledge of an agent's unauthorized act, knowingly accepts the benefits of that act. The unauthorized act is then treated as if it had been authorized from the beginning.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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