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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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?