agency

agency by ratification

Agency by ratification is an agency relationship created after the fact, when a principal approves or accepts the benefits of an act that someone performed on the principal's behalf without prior authority. By ratifying the unauthorized act, the principal becomes bound as if the agent had been authorized from the start. Ratification can be express, such as signing an approval, or implied by conduct, such as accepting the deal's proceeds.

Exam tip
Distinguish ratification (principal approves after the act) from estoppel (principal's conduct led a third party to believe authority existed).
Example
A licensee without a listing brings an offer on a home; the owner accepts the offer and agrees to pay the licensee's fee, creating agency by ratification.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23