Quiz on Termination of Agency

How can agency be terminated by the act of the parties?

• By unilateral decision

• By court order

• By mutual consent

• By legal notice

What is required for the principal to revoke the agent's authority?

• No notice required

• Reasonable notice

• Implied notice only

• Express notice only

In which situation the principal cannot revoke the agent's authority?

• When the agent is dishonest

• When the agent is incompetent

• When the agent is unavailable

• When the agent has an interest in the property

When is the agency terminated by operation of law?

• By principal's retirement

• By completion of the contract

• By mutual agreement

• By agent's decision

What happens if the principal dies and the agent has an interest in the property?

• The agency is terminated

• The agent must pay a fee

• The agent must resign

• The agency continues

In case of the principal's death, when is the termination effective?

• Upon third-party's knowledge only

• Immediately

• After 24 hours

• Upon agent's and 3rd party's knowledge

What happens if the agent renounces the business without notice?

• The agent must compensate the principal

• The agency is terminated

• No consequences

• The principal must pay damages

What is the consequence of the happening of an event which renders the agency unlawful?

• The principal must pay a fine

• The contract is extended

• The agency is terminated

• The agent is liable

In the case of the agent's renunciation, what must the agent provide to the principal?

• Legal notice

• No notice required

• Express notice

• Reasonable notice

What is the exception to the termination by the death of the principal?

• The agent must pay a fee

• The agency is terminated immediately

• The agency continues if the agent has an interest

• The agent must resign