Har entered into a contract with Rex on behalf of Gold.  By doing so, Har acted outside the scope of his authority as Gold’s agent.  Gold may be held liable on the contract if
　　A. Rex was aware of the limitation on Har’s authority.
　　B. Rex elects to hold Gold liable on the contract.
　　C. Gold ratifies the entire contract after Rex withdraws from the contract.
　　D. Gold retains the benefits of the contract.
　　Answer:D
　　D is corrent because although the agent’s act was outside the scope of his authority, the principal may, nevertheless, ratify the contract. Retention of the benefits of the contract constitutes implied ratification.
　　A is incorrect because Gold is not liable on the contract since the third party (Rex) had notice that Harp acted outside the scope of his authority.
　　B is incorrect because when the contract is unauthorized, the third party does not have the option of electing to hold the principal liable.
　　C is incorrect because ratification must occur before the third party withdraws from the contract.