An agency relationship terminates by all of the following EXCEPT:
Correct Answer
C) The agent finding a more profitable client
An agent cannot abandon a client simply because a more profitable opportunity arises; doing so would be a breach of fiduciary duty. Agency relationships are properly terminated by expiration of the agreement, mutual consent of the parties, death or incapacity of the principal, destruction of the subject matter, or revocation by the principal or renunciation by the agent. An agent's desire for a more profitable client is not a recognized or lawful method of terminating an agency relationship.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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