A
The agency is automatically terminated only when the principal explicitly revokes the agent’s authority, with no other factors influencing termination
Correct Answer
Incorrect Answer
B
The agency can only be terminated by the agent’s renunciation or the principal’s insolvency, but not by the completion of the business of the agency
Correct Answer
Incorrect Answer
C
The agency remains in effect until the principal explicitly revokes the agent's authority, regardless of any other events such as death or completion of the business
Correct Answer
Incorrect Answer
D
The agency is terminated solely by the completion of the business, with no other factors leading to its termination
Correct Answer
Incorrect Answer
E
The agency can be terminated by various events, including the principal revoking the agent's authority, the agent renouncing the business, the completion of the business, the death or unsoundness of mind of either party, or the principal being adjudicated insolvent
Correct Answer
Incorrect Answer
Solution
Contract Act Section 201. Termination of agency: An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors.
