License Law & AgencyQuestion 31 of 100

Which of the following would create an agency relationship by ratification?

a.A signed listing agreement
b.A principal accepting the benefits of unauthorized acts after the fact
c.A written buyer-broker contract
d.A formal power of attorney

Explanation

Agency by ratification arises when a principal approves or accepts the benefits of an agent's previously unauthorized actions. This retroactively creates the agency relationship. Express agency, by contrast, is created by a clear agreement such as a signed listing.

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