Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal's property that passes to the bankruptcy trustee.

Question

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Under the Second Restatement of Agency, the bankruptcy of the principal operates as a termination of the agency relationship as to the powers of the agent to affect the property of the principal that has passed to the control of the bankruptcy trustee, without the necessity of notice to the agent.

Under the Second Restatement, the Bankruptcy of the Principal Terminates