Asked by Bailey Rayoum on May 25, 2024
Verified
Which statement is false regarding termination of agency based on operation of law?
A) Impossibility of performance terminates the agency relationship.
B) An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest.
C) The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal.
D) A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement.
E) If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates.
Operation of Law
Changes in rights or obligations that occur automatically due to established legal rules, without the need for action or agreement by individuals.
- Acquire knowledge about the principles that control the ending of an agent-principal relationship.
Verified Answer
TD
Taylor DoukasMay 29, 2024
Final Answer :
D
Explanation :
A change in law that affects the ability to perform the agency agreement or makes the agreement illegal can indeed result in the termination of the agency agreement.
Learning Objectives
- Acquire knowledge about the principles that control the ending of an agent-principal relationship.