Asked by Jaqueline Martinez on Jul 12, 2024
Verified
When is constructive notification sufficient for an agent's apparent authority to end?
A) For third parties who have previously dealt with the agent.
B) For third parties who have begun to deal with the agent.
C) For third parties who are aware of the agency but did no business with the agent.
D) Never.
Constructive Notification
For third parties who have previously dealt with the agent or who have begun to deal with the agent. This is accomplished by advertising the agency’s termination in a newspaper of general circulation in the place where the agency business regularly was carried on.
Apparent Authority
The appearance or assumption of authority based on the actions or statements of the alleged principal, leading others to believe someone has the authority to act on behalf of a company or individual.
- Understand the processes involved in communicating to third parties the cessation of an agent’s authority.
Verified Answer
Learning Objectives
- Understand the processes involved in communicating to third parties the cessation of an agent’s authority.
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