AgencyIntermediateAlabama Exam

An agency relationship can be terminated by which of the following?

AMutual agreement of principal and agent only, as most licensees would generally expect
BDeath of either party, completion of purpose, mutual agreement, or expiration of termCorrect
COnly by court order
DOnly by AREC intervention

Why Death of either party, completion of purpose, mutual agreement, or expiration of term Is Correct

Answer B: Death of either party, completion of purpose, mutual agreement, or expiration of term

Agency relationships can be terminated by: completion of the agency's purpose, expiration of the agreement term, mutual consent, death or incapacity of either party, or revocation.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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