AgencyIntermediateDelaware Exam

Agency by ratification occurs when:

AA client signs a formal agency agreement
BA principal approves unauthorized acts of an agent after the factCorrect
CTwo brokers agree to share a commission
DThe Commission approves a new license application

Why A principal approves unauthorized acts of an agent after the fact Is Correct

Answer B: A principal approves unauthorized acts of an agent after the fact

Agency by ratification is created when a principal subsequently approves or affirms actions taken on their behalf by someone who acted without prior authorization.

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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