Multiple choice

An agency can be created by the following ways

  1. agency by actual authority

  2. agency by ratification

  3. agency by ostensible authority

  4. all of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Agency relationships can be formed through actual authority (express or implied agreement), through ratification (when a principal approves unauthorized acts), and through ostensible authority (when a principal's conduct leads a third party to reasonably believe agency exists). Since all three methods are valid, D is correct.

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