An __________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

Question

Quizplus · Accepted Answer

Agency by ratification occurs when a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent. The principal is bound by the acts of the agent as if the agent had been authorized to begin with. Agency by estoppel, on the other hand, occurs when a principal's actions lead a third party to believe that an agency relationship exists with an agent, even if it does not. Agency by independent action and agency by intervention are not recognized types of agency relationships.

An __________ Occurs If a Principal Approves or Accepts the Benefits