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

Principal-agent relationships can form through multiple channels: express agreement (clearly stated contract), implied agreement (from conduct/behavior), ratification (principal adopts unauthorized acts after the fact), or operation of law (court-imposed agency like necessity). All three mechanisms in options A, B, and C are valid ways agency arises. Option D correctly captures this comprehensive list.

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