Principal Has Entered into a Six-Month Contract During Which Agent

question 82

Multiple Choice

Principal has entered into a six-month contract during which Agent will sell Principal's products on a commission basis.Although Agent is complying with all terms of the agreement,during the third month Principal tells Agent she is no longer is authorized to sell his products,and will receive no further commissions if she does.Which of the following is true?

• A) Agent continues to have a duty to sell, because the six-month period has not yet expired.
• B) Principal has the power, but not the right, to terminate the agency.
• C) Principal has the right, but not the power, to terminate the agency.
• D) Principal has both the right and the power to terminate the agency.
• E) Principal has neither the right nor the power to terminate the agency.