Multiple choice

The relationship of principal and agent may arise by

  1. express or implied agreement

  2. ratification

  3. operation of law

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

An agency relationship can form by express agreement (clear terms), implied agreement (conduct suggesting agency), by ratification (principal later approves agent's unauthorized acts), or by operation of law (court-appointed guardians, trustees of insolvent estates, etc.). Since all these methods are valid ways to create principal-agent relationships, D is correct.

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