Regarding the effect of termination of agency on authority, the general rule of the Third Restatement is that:
A) it is reasonable for third parties to assume that an agent's actual authority continues unless and until the third party has notice of circumstances that make it unreasonable to continue that assumption.
B) the termination of actual authority automatically terminates any apparent authority held by the agent.
C) apparent authority ends only upon actual notice, either oral or written, to the third party.
D) apparent authority continues until the third party with whom the agent has previously dealt on credit receives constructive notice of termination.
Correct Answer:
Verified
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