Under what circumstances can an agent's authority be terminated by the principal?
Correct Answer
C) At any time, subject to the agreement's terms on notice and costs
A principal can generally revoke an agent's authority at any time, though they may be liable for damages or costs as specified in the agency agreement. The right to terminate is fundamental to the agency relationship, though it may have financial consequences.
Why This Is the Correct Answer
A principal can revoke an agent's authority at any time. The agency agreement may still require notice or payment of costs or damages, so ending it early can have financial consequences.
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