To Avoid Being Bound by the Acts of the Agent

question 14

Multiple Choice

To avoid being bound by the acts of the agent after the agency has ended, the principal:

• A) should give actual notice to those who have dealt with the former agent.
• B) need not give notice as he has no liability.
• C) should give verbal notice if the termination is due to loss of legal capacity by the principal.
• D) should get the agent to give notice.

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Definitions:

Reasonable Care

The level of care that an ordinary, prudent person would use in similar circumstances to avoid causing harm to others.

Price v. High Pointe Oil Company, Inc.

A legal case that may address issues related to negligence, contract, or other legal matters in the context of a dispute between a customer and an oil company.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing certain fundamental rights and freedoms to American citizens.

Individual Rights

Rights that are recognized and protected for individuals, typically ensuring personal freedom and equality under the law.