Agency

What is 'ratification' in the context of agency law?

AThe written agreement creating an agency
BThe principal's approval of an agent's previously unauthorized act✓ Correct
CThe termination of the agency by mutual consent
DThe transfer of agency duties to a subagent

Explanation

Ratification occurs when a principal approves or accepts an act performed by someone without prior authority, effectively creating an agency relationship retroactively. Once ratified, the act is binding on the principal.

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