All of the following can terminate an agency relationship EXCEPT
Correct Answer
A) Ratification of the agent's unauthorized act
An agency ends when the consent that created it is withdrawn or runs out: the principal revokes, the agent renounces, or the stated term expires. Ratification works the other way — the principal approves an act the agent took without authority, and the act then binds the principal as though it had been authorized from the start. Because ratification creates or confirms authority, it belongs on the creation side of the chapter rather than among the ways an agency ends.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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A property management agreement between an owner and a property manager typically specifies which of the following?
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A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → A listing agent tells prospective buyers that the home sits on 'the finest street in the whole county' and is 'a once-in-a-lifetime opportunity.' These statements are best characterized as:
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- → Casey Patel asks a licensee to unlock homes and write up an offer but refuses to sign any representation agreement. What is Casey's usual status relative to that brokerage?
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Previous Question
A buyer's agent is midway through negotiating a purchase contract for her buyer client when the buyer suffers a severe stroke. A probate court then enters an order finding the buyer legally incapacitated, and no power of attorney is in place. Which doctrine governs what happens to the agency?
Next Question
Which of the following is NOT a way an agency relationship may be created?