Agency

In Massachusetts, 'ratification' of an agent's unauthorized act by the principal means:

AThe principal rejects the agent's unauthorized act
BThe principal approves the unauthorized act with full knowledge, making it binding✓ Correct
CThe agent is relieved of all responsibility
DThe act requires court approval to be valid

Explanation

Ratification occurs when the principal, with full knowledge of the agent's unauthorized act, expressly or implicitly approves it. The ratified act becomes binding as if the agent had been originally authorized.

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