Agency

What is 'ratification' of an agent's unauthorized act in Illinois real estate?

AThe agent's right to act without prior authorization in emergencies
BThe principal's after-the-fact approval of an agent's unauthorized act, making it binding✓ Correct
CA court order validating a real estate contract that lacked proper authorization
DIDFPR's approval of a brokerage's operating procedures

Explanation

Ratification occurs when a principal (client) approves or accepts the benefit of an agent's unauthorized act, thereby making it binding after the fact. For example, if a broker enters into an agreement without authorization but the client later accepts its terms, the client has ratified the broker's act.

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