Question

Agency law is similar to contract law in that both an agency and a contract may be terminated by the parties or by operation of law.

a. True
b. False
One or more parties may terminate an agency relationship by placing into the agreement a time period for termination. When that time _______ , the agency ends. In addition, the parties can specify that the agency is for a particular ________ . Once that is achieved, the agency ends. Alternatively, the parties can include a specific event as a trigger for termination; once that event _______, the agency ends. The parties can terminate an agency relationship prior to any of the preceding events by ______ agreement, or revocation by ______ individual party.

Answer 1

1. True.

2. Expires; purpose; occurs; mutual; either.

Step-by-step explanation:

An agency can be defined as a mutual relationship existing between two parties, wherein a principal authorizes the agent to act as the principal's representative or on his behalf (fiduciary role) in dealing with third parties.

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.

The parties entering into a contractual agreement are obligated to terminate an agency relationship by placing into the agreement a time period specifying the termination. Thus, when that time elapses or expires, the agency between the parties involved ends. Furthermore, the parties involved may specify the particular purpose for which the agency is established. Once that purpose is achieved, the agency ends.