Final answer:
If a broker acts on behalf of a principal without authorization and later the principal accepts what the agent has done on his behalf, it is called ratification.
Step-by-step explanation:
If a broker acts on behalf of a principal without authorization and later the principal accepts what the agent has done on his behalf, it is called ratification.
Ratification refers to the retroactive approval or acceptance of an act that was performed without authorization. In this case, the principal essentially validates the actions taken by the broker on their behalf after the fact.
For example, if a broker sells a property on behalf of a principal without their knowledge or consent, but the principal later accepts the sale and benefits from it, this would be considered ratification.