Final answer:
An agency relationship can be terminated due to the expiration of time, by actions of either the principal or the agent, or by operation of law, indicating that all the provided options are ways an agency relationship can end.
Step-by-step explanation:
An agency relationship may be terminated by a variety of methods, and the correct answer to the student's question is D. All of the above. Specifically, the termination of an agency relationship can occur through:
- A. Time - The relationship may have a specified duration or purpose that, once expired or fulfilled, naturally ends the agency.
- B. Actions of the principal and agent - Either party may decide to terminate the relationship, which can be done through mutual agreement, unilateral action, or even breach of the agency agreement.
- C. Operation of law - Certain events like death, insanity, bankruptcy, or changes in the law can automatically end an agency relationship.
Understanding agency termination is important in the context of contract law and business operations, providing a guide on the legal implications and processes for ending the relationship between an agent and principal.