AgencyIntermediateAlabama Exam

An agent who continues to act for a principal after the agency agreement has expired is acting:

AWithin implied authority
BAs a volunteer without authority, potentially exposing themselves to liabilityCorrect
CUnder ratification authority
DUnder the continuing duty of loyalty, which is the approach most often followed

Why As a volunteer without authority, potentially exposing themselves to liability Is Correct

Answer B: As a volunteer without authority, potentially exposing themselves to liability

Once the agency agreement expires, the agent no longer has authority to act. Continuing to act without authorization can create legal liability for the agent.

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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