Which of the Following Is False Regarding Termination of Agency

question 10

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 terminate 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.

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Definitions:

Contract Maturity

The specified date on a financial contract when the final payment is made or the contract comes to an end.

Futures Price

The agreed-upon price for a financial instrument or commodity to be delivered and paid for at a future date.

Spot Price

The current market price at which an asset can be bought or sold for immediate delivery.

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.