According to the Second Restatement,in which of the following situations would an agency be terminated by operation of law?
A) An outbreak of war places the principal and agent in the position of alien enemies.
B) The death of the individual principal,only upon the agent's notice of the death.
C) The agent gives notice to the principal that she is renouncing the authority given to her.
D) None of these.

Question

Quizplus · Accepted Answer

Under the Second Restatement, an agency relationship can be terminated by operation of law if any of the following events occur: (1) the principal or agent dies; (2) the principal or agent loses capacity to perform the duties required under the agency relationship; (3) the subject matter of the agency is destroyed; (4) the agency relationship becomes illegal due to a change in the law; or (5) the outbreak of war places the principal and agent in the position of alien enemies. Therefore, in situation A, the agency would be terminated by operation of law. Situation B is incorrect because the death of the principal alone does not terminate the agency relationship; rather, the agent must be notified of the death before the agency terminates. Situation C is incorrect because the agent's renunciation of authority does not terminate the agency relationship by operation of law.

According to the Second Restatement,in Which of the Following Situations