AgencyIntermediateDelaware Exam

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 authorizedCorrect
CSimply the internal administrative process of the Delaware Real Estate Commission approving a new standardized agency form, in general
DA court's approval of a real estate transaction involving a minor

Why A principal's approval of unauthorized acts performed by an agent, making those acts as binding as if originally authorized Is Correct

Answer B: A principal's approval of unauthorized acts performed by an agent, making those acts as binding as if originally authorized

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.

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.

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