Final answer:
An agency was created by ratification when the owner accepted the actions of Ms. Lightdeer after the fact. This illustrates the principle of contractual rights based on property rights, reinforcing the value of a robust legal system in upholding such rights and fostering economic growth.
Step-by-step explanation:
In the scenario where Ms. Lightdeer showed a property to Mr. And Mrs. Chu without initially having an agency agreement with the owner, but then had her actions later ratified by the owner, the agency was created by ratification. Ratification occurs when the principal (the owner, in this case) approves the actions of the agent (Ms. Lightdeer) after they have taken place. Since the owner accepted the purchase offer submitted by Ms. Lightdeer, they have consented to her actions, thereby creating an agency relationship after the fact.
Contractual rights are heavily reliant upon property rights, which allow individuals to establish agreements on the use of their property with others. These rights provide a course of action through the legal system in the event of noncompliance. An agency created by ratification can be seen as a recognition of these contract and property rights—the owner recognized the agreement entered into by Ms. Lightdeer as if it had been authorized from the start, legitimizing the transactions made in relation to their property.
This concept underscores the importance of a strong legal system in enforcing contracts, ensuring that individuals can enter into contracts and expect them to be upheld, which is crucial for encouraging economic transactions and growth.