If a principal notifies a third party that an agency relationship has ended, at what point does that authority end?
A) It ends immediately
B) 24 hours
C) 48 hours
D) 7 days
E) 10 days

Question

Quizplus · Accepted Answer

The authority of the agent ends immediately upon notification to the third party that the agency relationship has ended. This is because the third party's knowledge of the termination is what effectively ends the agent's ability to act on behalf of the principal in dealings with that third party.

If a Principal Notifies a Third Party That an Agency