AgencyIntermediateCalifornia Exam

Which of the following would automatically terminate an agency relationship in California?

AThe agent taking a vacation
BDeath of the principalCorrect
CA disagreement between agent and principal
DThe agent receiving competing offers

Why Death of the principal Is Correct

Answer B: Death of the principal

An agency relationship is automatically terminated by the death or incapacity of either the principal or agent, destruction of the subject property, or expiration of the agreement term. Death of the principal immediately ends the agent's authority.

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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