Concept:Agency by ratification arises when a principal later approves an act performed on his behalf without proper prior authority.
Explanation:An agent is normally required to act strictly within the scope of the authority given by the principal.
Sometimes, however, an agent may carry out an act without authority or exceed the powers granted to him.
In such a case, the principal has the option to reject or accept the act.
If the principal accepts and approves the action, this subsequent approval is known as ratification.
Once ratified, the act becomes legally binding as if it had been authorised from the very beginning.
The principal cannot later withdraw his approval after he has accepted the benefits of the act.
Therefore, an agency agreement formed when the principal approves the action of his representative is called agency by ratification.
Answer:A. ratification