4.4 Quiz on Termination of Agency Relationships

What is the most straightforward method of terminating an agency relationship?

• Frustration of Contract

• Dissolution by Agreement

• Revocation by Principal or Agent

• Completion of Task or Purpose

When does the authority of an agent automatically terminate if the agency was established for a specific task or purpose?

• At the end of a fixed-term agreement

• After a reasonable timeframe has elapsed

• Upon mutual agreement between principal and agent

• Upon completion of the task or purpose

In what situation can the principal or agent revoke the agency, effectively terminating the agent's authority?

• If the agency is established for a predetermined period

• If unforeseen events make fulfilling the agency contract impractical

• If the agency was established for an unspecified but limited time

• If both parties decide to end the relationship

What happens to the agent's apparent authority when the actual authority is revoked?

• It is enhanced

• It is transferred to the principal

• It remains unchanged

• It is invalidated

How can the principal avoid being bound by the agent's actions after revocation?

• By entering into a new contract with the agent

• By notifying all relevant third parties of the termination

• By revoking the agent's apparent authority

• By extending the agency relationship

What is the consequence for third parties who contract with an agent after their authority has been revoked?

• They must renegotiate the terms of the contract

• They can continue the contract with the agent

• They are not affected by the revocation

• They have grounds to sue the principal

In what situation does the doctrine of apparent authority not apply?

• When the principal is incapacitated

• When the agent's authority is revoked by the agent

• When the agent's authority is revoked by the principal

• When notification of termination is impossible

What is the common way an agency relationship ends when the agency is established for a fixed-term period?

• Upon mutual agreement between principal and agent

• Upon completion of the task or purpose

• At the end of the fixed-term period

• After a reasonable timeframe has elapsed