A California agent acts outside the scope of their authority by making unauthorized promises to a buyer on behalf of the seller. Upon learning what the agent did, the seller chooses to honor the agreement as negotiated. What legal concept describes the seller's action?
Correct Answer
C) Ratification
Ratification occurs when a principal, with full knowledge of an agent's unauthorized acts, voluntarily accepts or affirms those acts. By choosing to honor the agreement, the seller retroactively validates the agent's unauthorized conduct, binding the principal as though authority had existed from the outset.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
More Laws Of Agency Fiduciary Duties Questions
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A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
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Previous Question
A California seller signs an exclusive right-to-sell listing agreement with Broker X. During the listing period, the seller independently finds a buyer and closes the sale without Broker X's involvement. What is Broker X's commission entitlement?
Next Question
A California listing agent represents a seller and receives two offers simultaneously. Offer 1 comes from an unrepresented buyer; Offer 2 comes from a buyer represented by a cooperating broker. Offer 1 would yield the listing agent a higher net commission because no cooperating broker commission would be shared. Which of the following best describes the listing agent's obligations?