When an Agent's Authority Is Terminated by Mutual Agreement, What

question 39

Multiple Choice

When an agent's authority is terminated by mutual agreement, what is the impact on the agent's actual and apparent authority?

• A) The actual authority continues until the third party is notified of termination, but the apparent authority ceases.
• B) Both the actual authority and the apparent authority continue until the third party is notified of termination.
• C) Both the actual authority and the apparent authority immediately cease.
• D) The actual authority ceases, but the apparent authority continues until the third party is notified of termination.
• E) Both the actual authority and the apparent authority continue, because an agent's authority cannot be terminated by mutual agreement.