When the Parties Do Not Agree on the Duration of the Agency

question 42

Multiple Choice

When the parties do not agree on the duration of the agency and the agent has incurred substantial expenses in completing the agency,a court will likely hold that:

• A)the agency relationship must be terminated immediately to avoid unjust enrichment.
• B)the principal cannot terminate the agency until after the agent has had a reasonable time to try to earn the expected commission.
• C)only the principal can terminate the agency and the courts cannot hold him liable for any expenses incurred by the agent during the agency period.
• D)the principal will be required to indemnify the agent if some fault of the agent causes a loss.

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Definitions:

FR(N)

Refers to the function assessing the rate at which a system or component fails, emphasizing its reliability over time.

Preventive Maintenance

The routine maintenance and care of equipment and machinery to prevent unexpected breakdowns and costly repairs.

Breakdown Cost

The costs associated with a machinery or equipment failure, including repair costs, lost production time, and impact on product quality.

Components In Series

Parts or elements arranged in a sequence where each component must function correctly for the overall system to work.