Agency
If an Oregon broker exceeds their authority and enters into a contract on behalf of their principal without authorization, the contract is:
AAutomatically void and unenforceable
BVoidable at the principal's option, but may be ratified✓ Correct
CBinding on the principal if the other party was acting in good faith
DBinding only if approved by OREA
Explanation
When a broker acts beyond their authority, the resulting contract is voidable at the principal's option. Alternatively, the broker may be personally liable to the third party.
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