Asked by Steven Walsh on Jul 14, 2024
Verified
Which of the following is true of an agent who terminates in violation of the agency agreement?
A) The agent has the right,but not the power,to terminate.
B) The agent has the power,but not the right,to terminate.
C) The agent has neither the power nor the right to terminate.
D) The agent has both the power and the right to terminate.
Violation
The act of breaking or failing to comply with a rule, agreement, or law.
Agency Agreement
A legal contract in which one party (the agent) agrees to act on behalf of another party (the principal) in business transactions or other matters.
Terminate
To bring to an end or to conclude something such as an agreement, employment, or process.
- Differentiate between revocation and renunciation when it comes to the termination of an agency agreement.
Verified Answer
YC
Yolanda CrosbyJul 17, 2024
Final Answer :
B
Explanation :
A party can revoke or renounce even if doing so violates the agency agreement.Although either party has the power to terminate in such cases,there is no right to do so.
Learning Objectives
- Differentiate between revocation and renunciation when it comes to the termination of an agency agreement.
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