Agency
In Missouri, an agent who enters into a transaction without authority and the principal later approves the transaction has created an agency by:
AImplied authority
BRatification✓ Correct
CEstoppel
DExpressed authority
Explanation
Ratification is the after-the-fact approval by the principal of an agent's unauthorized act. Once ratified, the transaction is binding as if the agent had prior authority.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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