Lau, an agent for Mae, acts outside the scope of her authority, to enter into a contract on Mae's behalf. Mae approves of the deal and affirms the contract. This is

Question

Quizplus · Accepted Answer

Agency by ratification occurs when a principal approves and accepts the actions of an agent who initially acted without authority. In this scenario, Mae's affirmation of the contract entered into by Lau, despite Lau acting outside her authority, constitutes agency by ratification.

Lau, an Agent for Mae, Acts Outside the Scope of Her