When an Agency Is Terminated

question 226

Multiple Choice

When an agency is terminated:

• A) the agent's authority to act for the principal does not end
• B) the agent's authority to act for the principal ends
• C) the agent's authority to act for the principal is reduced to very limited conditions
• D) the agent may never work with the principal again
• E) the agent may not work for someone who is in competition with the principal

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Definitions:

Legal Ability

Refers to the capacity of a party to enter into legally binding contracts and to be held accountable for the commitments made.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party, completion of which constitutes acceptance of the contract.

Right to Sue

The legal right of an individual or entity to bring a lawsuit against another party in a court of law.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party.