Termination of Principal-Agent Relationship

Question 1

When an agency relationship is terminated by operation of law

Answer 1

the agent can no longer enter into a binding agreement with the principal

Question 2

What can terminate an agency relationship through operation of law

Answer 2

1) incapacity
2) insanity
3) Bankrupt
4) illegal or impossible

Question 3

An undisclosed principal is liable unless

Answer 3

the third party holds the agent liable

Question 4

When an agency relationship is terminated due to an act by the principal/agent

Answer 4

Third parties are entitle to notice of the termination from the principal

Question 5

Failure to give notice of termination

Answer 5

gives the agent apparent authority to act on behalf of the principal

Question 6

A principal must

Answer 6

give notice to all parties in which the agent had a prior dealing with

Question 7

Constructive or public notice

Answer 7

are given to parties who knew of the existence of the relationship