Agency

Ratification of an agency relationship occurs when:

AThe principal formally signs an agency agreement before any action is taken
BThe principal accepts and approves an act taken on their behalf without prior authorization✓ Correct
CAn agent acts within clearly defined authority
DThe IREC approves a broker's license

Explanation

Ratification occurs when a principal approves or accepts an action taken by someone who acted on their behalf without prior authorization, creating an agency relationship after the fact.

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