Xavier Hired Sam to Sell Xavier's Private Lear Jet

question 16

Essay

Xavier hired Sam to sell Xavier's private Lear jet.Before any sale could be made,the jet was destroyed in a crash.The destruction of the jet terminated the agency by operation of law.Whom must Xavier inform of the termination?

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Definitions:

Sinking Fund

A fund established by a borrower, setting aside revenue over time to repay a debt or replace a depreciating asset in the future.

Call Provisions

Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.

Bond Indenture

A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date.