Chapter 9 Self-test questions

. Identify which of the following are examples of termination by operation of law. Please select all that apply.

Termination due to bankruptcy/insolvency

Termination due to dissolution

Termination due to death of principal or agent

Revocation or renunciation of authority

Termination due to frustration

Expiration of fixed-term agency

Termination by performance

. Where an agency agreement is to last for a fixed period, the, upon the expiration of that period the agent's actual authority will terminate.

True

False

. The situation where the agent gives up the authority that has been bestowed upon him by the principal is known as ______

. The death, dissolution, mental incapacity, bankruptcy or insolvency of the principal will always terminate the authority of the agent.

True

False

. Which one of the following is not an irrevocable agency?

Where a power of attorney is expressed as irrevocable and is given to secure a proprietary interest of the done of the power.

Where the agent's authority is granted by deed for the purpose of protecting an interest of the agent that is related to his right to remuneration under the agency contract.

Any lasting power of attorney created under the Mental Capacity Act 2005.

Where, in the course of an agency relationship, the agent becomes liable to a third party, and the principal is liable to indemnify the agent for such liability.

. Which of the following statements are correct? Please select all that apply.

The death of the principal will terminate the agency relationship, irrespective of whether the agent has notice of the principal's death.

The agent will not be entitled to compensation or remuneration for acts that occurred after the principal's death.

The death of the agent will terminate the agency relationship.

Where the principal dies, the actual authority of the agent will cease, unless it is irrevocable.

. The bankruptcy/insolvency of the agent will automatically terminate the agency relationship.

True

False

. A principal can terminate an agency agreement with a commercial agent by providing reasonable notice.

True

False

. Which one of the following statements is incorrect?

Where the principal dies, the agency relationship and the agent's actual authority are terminated, providing that the agent had notice of the principal's death.

The termination of the agency relationship will not automatically terminate the agent's apparent authority.

The terms of a contract of agency can survive the termination of the agent's authority.

Where the principal revokes the agent's authority, then the agent's actual authority will not cease until such time as the agent receives notice of the revocation.

. What does reg 17(6) of the Commercial Agents (Council Directive) Regulations 1993 state?

A commercial agent shall be entitled to compensation, rather than an indemnity, unless the contract of agency states otherwise.

A commercial agent's right to compensation or an indemnity will apply where the contract of agency is terminated due to the death of the commercial agent.

A commercial agent is entitled to compensation for the damage he suffers as a result of the termination of his relations with his principal.

A commercial agent is entitled to an indemnity if the agency contract provides that he shall receive an indemnity and he has brought the principal new customers or has significantly increased the volume of business with existing customers.

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