What is 'ratification' in agency law?
Why After-the-fact approval of an unauthorized act by the principal Is Correct
Answer B: After-the-fact approval of an unauthorized act by the principal
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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- Which type of agency is created when a principal's actions lead a third party to reasonably believe an agency relationship exists?Agency
- Which type of agency relationship is created when a principal approves an act already performed without prior authorization?Agency
- What is 'ratification' in the context of agency law?Agency
- Which fiduciary duty requires an agent to keep the principal's confidential information secret even after the agency relationship ends?Agency
Key Terms to Know
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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