AgencyIntermediateColorado Exam

The concept of 'ratification' in Colorado agency law occurs when:

AThe principal pre-authorizes the agent's actions
BThe principal approves an unauthorized act of the agent after the factCorrect
CThe agent formally accepts an offer on behalf of the principal, in general
DBoth parties sign the agency agreement

Why The principal approves an unauthorized act of the agent after the fact Is Correct

Answer B: The principal approves an unauthorized act of the agent after the fact

Ratification occurs when a principal approves or accepts the benefits of an agent's unauthorized act after it has been performed, thereby binding themselves to the act as if it had been originally authorized.

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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