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Which of the following is a true statement?

A. In order to create an agency relationship there must always be a written agreement prepared by an attorney.

B. An agency that comes into existence due to the acts or conduct of the parties is called an express agency.

C. Agency by ratification can occur in a situation where there was no authority for the agent's actions when the agent originally undertook them.

D. An apparent agency can only be created by the actions of the agent.

1 Answer

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Final answer:

The true statement is that agency by ratification can occur in a situation where there was no authority for the agent's actions when the agent originally undertook them.

Step-by-step explanation:

A. In order to create an agency relationship there must always be a written agreement prepared by an attorney.

B. An agency that comes into existence due to the acts or conduct of the parties is called an express agency.

C. Agency by ratification can occur in a situation where there was no authority for the agent's actions when the agent originally undertook them.

D. An apparent agency can only be created by the actions of the agent.

The true statement from the given options is C. Agency by ratification can occur in a situation where there was no authority for the agent's actions when the agent originally undertook them.

In agency law, ratification occurs when a principal accepts or acknowledges an agent's unauthorized act or conducts as if it had been authorized from the beginning. This can happen when the principal affirms the agent's actions after the fact, thereby creating a valid agency relationship. Ratification allows the principal to be bound by the agent's actions.

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