Contracts

What is 'ratification' of an unauthorized contract in Idaho real estate?

ARejection of an unauthorized contract
BThe principal's acceptance and approval of an act performed by an agent that exceeded the agent's authority, making the contract binding✓ Correct
CFiling an unauthorized contract with IREC
DA court order validating an otherwise invalid contract

Explanation

Ratification occurs when a principal accepts and affirms an act performed by an agent who lacked authority. In Idaho real estate, if an agent exceeds their authority but the principal subsequently ratifies the act (expressly or by conduct), the contract becomes binding as if originally authorized. Principals who accept benefits of an unauthorized act may be deemed to have ratified it.

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