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Questions and Answers
A seller instructs their listing agent not to show the property while it's being painted. The agent disregards this instruction, shows the home, and secures a high offer which the seller accepts. This scenario exemplifies:
A seller instructs their listing agent not to show the property while it's being painted. The agent disregards this instruction, shows the home, and secures a high offer which the seller accepts. This scenario exemplifies:
- Dual agency
- Ostensible agency
- Agency by ratification (correct)
- Agency by estoppel
Which of the following best describes the key element of 'agency by ratification'?
Which of the following best describes the key element of 'agency by ratification'?
- The agent is acting under clear instructions from the principal from the beginning of the interaction.
- The agent acts outside their authority, and the principal later approves that action. (correct)
- The agent and principal have a formal agreement in writing stating the scope of authority.
- The agent's actions are always considered within their authority, regardless of the situation.
A real estate agent shows a property against the seller's explicit instructions, and the seller later accepts an offer from that showing. What legal principle could apply to explain this scenario?
A real estate agent shows a property against the seller's explicit instructions, and the seller later accepts an offer from that showing. What legal principle could apply to explain this scenario?
- Agency by ratification because the seller approved the agent's unauthorized actions. (correct)
- Dual agency as a result of the agent's actions.
- Agency by estoppel because the agent's actions bound the seller.
- Implied agency due to common practice.
What is the primary distinction between 'ostensible agency' and 'agency by ratification'?
What is the primary distinction between 'ostensible agency' and 'agency by ratification'?
Under what circumstances does a dual agency typically arise?
Under what circumstances does a dual agency typically arise?
Flashcards
Agency By Ratification
Agency By Ratification
An agency relationship that occurs when a principal approves or ratifies an unauthorized act performed by an agent.
Ratification
Ratification
When a principal accepts the benefits of an unauthorized act performed by an agent, the principal is considered to have ratified the act.
Acting Outside the Scope of Authority
Acting Outside the Scope of Authority
An agent acting outside the scope of their authority when they weren't explicitly told to do so.
Ostensible Agency
Ostensible Agency
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Agency By Estoppel
Agency By Estoppel
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Study Notes
Agency Relationships
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Agency by Ratification: A principal confirms an agent's act that was unauthorized at the time it was performed.
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Example: A seller instructed their listing agent not to show a house while it was being painted. The agent, disregarding this instruction, showed the house and received an offer exceeding the listing price. The seller, upon learning of this, accepted the offer and communicated this to the buyer. This acceptance, following the unauthorized viewing, is an example of agency by ratification.
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Key Characteristic: The agent's actions were outside their authorized scope when performed, but the principal later approved of them.
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Ostensible Agency & Agency by Estoppel: These involve misleading a third party into believing an agency relationship exists, even if no formal agreement is present. They are not illustrated in the scenario.
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Dual Agency: This is when a single agent represents both buyer and seller simultaneously.
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Legal Requirements: In California, dual agency is legally permissible but requires the informed, written consent of both parties beforehand. The provided example does not contain this aspect.
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Description
Test your understanding of various agency relationships, including agency by ratification, dual agency, and more. This quiz will help clarify the distinctions between these concepts and their legal implications. Perfect for students in real estate or law courses.
