What is the definition of Agency by Ratification?

What is the definition of Agency by Ratification?

• A. Principal approves the agent's act before it occurs
• B. Principal approves agent's act after it occurs
• C. Agent operates independently without authorization
• D. Principal denies agency due to lack of evidence

Answer: (B)

Agency by Ratification occurs when a principal endorses or approves actions taken by an agent after those actions have already been performed without prior authorization. In this type of agency, the principal recognizes the benefits of the agent's actions and provides consent, which effectively validates and ratifies what has transpired. This means that the principal can choose to accept the outcomes of the agent’s actions as if they had authorized those actions from the beginning. The key element here is the timing of the principal’s approval, which is critical for distinguishing this concept from other forms of agency relations, where approval occurs before an action takes place. In the context of real estate practice, understanding agency by ratification is essential, as it highlights the importance of communication and consent in establishing valid agency relationships. This concept reflects the legal principle that a principal can still be bound by an agent's unauthorized acts if they later choose to ratify those acts, benefiting from the agent's efforts.

Agency by Ratification occurs when a principal endorses or approves actions taken by an agent after those actions have already been performed without prior authorization. In this type of agency, the principal recognizes the benefits of the agent's actions and provides consent, which effectively validates and ratifies what has transpired. This means that the principal can choose to accept the outcomes of the agent’s actions as if they had authorized those actions from the beginning.

The key element here is the timing of the principal’s approval, which is critical for distinguishing this concept from other forms of agency relations, where approval occurs before an action takes place. In the context of real estate practice, understanding agency by ratification is essential, as it highlights the importance of communication and consent in establishing valid agency relationships. This concept reflects the legal principle that a principal can still be bound by an agent's unauthorized acts if they later choose to ratify those acts, benefiting from the agent's efforts.