Which of the Following Statements Is True About an Agency

Multiple Choice

Which of the following statements is true about an agency by ratification?

A) A principal must have full knowledge of an agent's actions for the agency to be effective.
B) It occurs when a third person is led to believe by a principal that a certain individual is the principal's agent.
C) It occurs when a principal draws up a legal document to establish an agency relationship before an agent undertakes any action.
D) A third party must be unaware of the existence of a principal at the time of an agent's act for the agency to be effective.