An agency relationship in South Dakota can be terminated by all of the following EXCEPT:
Correct Answer
C) A third party demanding that the agency be terminated
A third party has no legal authority to terminate an agency relationship — only the parties to the agency agreement (the principal and agent) can do so. Agency relationships in South Dakota can be lawfully terminated by mutual agreement, expiration of the contract term, completion of the purpose, or death or incapacity of either party. While an agent may unilaterally withdraw or a principal may revoke the agency, such actions may constitute a breach of contract and expose the breaching party to liability.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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