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.

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Definitions:

Basic Necessities

Essential items required for survival, including food, clothing, shelter, and clean water.

Lack of Education

A state or condition where an individual has not received sufficient formal learning or instruction.

Economic Necessity

A situation or condition where certain actions or decisions are compelled by financial need or constraints.

Personal Satisfaction

The feeling of contentment or fulfillment that comes from achieving personal goals, desires, or from overall life circumstances.