Agency

What is 'ratification' in Delaware real estate agency law?

AThe formal signing of a purchase contract by all parties
BA principal's approval of unauthorized acts performed by an agent, making those acts as binding as if originally authorized — the principal adopts the agent's unauthorized conduct✓ Correct
CThe process of the Delaware Real Estate Commission approving a new agency form
DA court's approval of a real estate transaction involving a minor

Explanation

Ratification occurs when a principal approves or accepts the benefits of an agent's unauthorized act after the fact, making the act binding as if originally authorized. In real estate, if a salesperson exceeds their authority and a seller accepts the benefits (e.g., accepts earnest money from an unauthorized deal), the seller has ratified the agent's actions.

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