Complete Loss of Intellectual/legal Capacity on the Part of the Principal

question 26

Multiple Choice

Complete loss of intellectual/legal capacity on the part of the principal will:

• A)give the principal the right to elect to terminate the agency agreement.
• B)automatically terminate the agency unless the agent was appointed under the authority of a general power of attorney.
• C)automatically terminate the agency unless the agent was appointed under the authority of an enduring power of attorney.
• D)increasing the standard of care owed by the agent to the principal and broaden the scope of their duties.

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Definitions:

Usage of Trade

Established practices or methods of dealing regularly observed in a particular industry or trade.

Commercially Impracticable

A condition in contractual agreements indicating that fulfilling the contract has become excessively burdensome or impossible due to unforeseen events.

Perfect Tender Rule

A legal principle requiring the seller to deliver goods in accordance with the terms exactly as specified in the contract, without any deviation.

Commercial Impracticability

A legal doctrine under which a party may be released from a contract when events render performance commercially impracticable.