The Third Restatement specifies that an agency is automatically terminated when the principal goes bankrupt.

Question

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The Third Restatement of Agency does not specify that an agency is automatically terminated when the principal goes bankrupt. Agency relationships can be affected by the principal's bankruptcy, but termination is not automatic and depends on the nature of the agency and the specifics of the bankruptcy case.

The Third Restatement Specifies That an Agency Is Automatically Terminated