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

question 10

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 the agent 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:

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and within a specified time period.

Aggregate Demand

Total economic demand for goods and services within an economy, calculated at a fixed price level during a designated time frame.

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period at different possible price levels.

Macroeconomic Forecasting

The process of making predictions about the overall state of the economy, including growth rates, inflation, and unemployment, based on analysis of trends and economic indicators.