Which of the Following Is False Regarding Termination of Agency

question 62

Multiple Choice

Which of the following is false regarding termination of agency based on operation of law?

• A) Impossibility of performance terminates the agency relationship.
• B) An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest.
• C) The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal.
• D) A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement.
• E) If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates.