AgencyIntermediateAlabama Exam

An agency relationship may be terminated by all of the following EXCEPT:

AMutual agreement of the parties
BCompletion of the purpose of the agency, under the applicable standard
CUnilateral revocation by either party at any time without consequenceCorrect
DDeath or incapacity of either party

Why Unilateral revocation by either party at any time without consequence Is Correct

Answer C: Unilateral revocation by either party at any time without consequence

While either party can revoke an agency relationship, doing so in breach of contract can result in liability for damages. The agency can terminate by mutual agreement, completion of purpose, expiration, death/incapacity, or destruction of the property — but revocation may not always be without legal consequence.

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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