Scott is trying to sell his home fsbo. the bartells believe scott's home could be their dream home, but they have been working with melinda, a licensee, to find a new home. melinda shows the bartells the home, failing to disclose her status as an agent. they love scott's home and want to buy it. scott is not interested in any way, shape, or form in working with an agent. however, the bartells have made an offer above his asking price and he can't refuse it over the melinda issue. which of the following describes the creation of this agency relationship?
a. written or expressed
b. ostensible agency
c. ratification
d. implied

c. Ratification

Explanation:

Agency by ratification occurs when a person (in this case Scott) approves an act which has been done in his name and on his behalf by agent who in fact, had no actual authority to act on his behalf when the act was done. In this case, Melinda was not an appointed agent by Scott, however, the offer was accepted, an agency has been created between Scott and Melinda by ratification.

Option A is incorrect because expressed agency means that Melinda has been duly appointed as an agent by Scott.

Implied agency is also wrong because, Scott did not at anytime introduce Melinda as his agent. He never implied it in speech or writing.

Option B is also wrong because there was no previous relationship between Scott and Melinda that would make people believe Melinda was his agent.

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