Agency
Ratification of an unauthorized act by an agent occurs when the principal:
ARejects the agent's unauthorized action
BAccepts the benefits of and affirms the agent's unauthorized action after the fact✓ Correct
CFiles a complaint against the agent
DTerminates the agency agreement
Explanation
Ratification occurs when a principal, with full knowledge of an agent's unauthorized act, accepts the benefits of or affirms the act. Ratification effectively makes the unauthorized act retroactively authorized.
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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.
Math Concepts
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