Under the Second Restatement, except in cases of death or incapacity, or where the performance of an authorized act becomes impossible, actual notice of termination of agency is required to the third party if she is one:
A) with whom the agent has dealt on credit.
B) to whom the agent has been specially accredited.
C) with whom the agent has begun to deal, as the principal should know.
D) All of these.

Question

Quizplus · Accepted Answer

All of the choices are situations where actual notice of termination of agency is required under the Second Restatement. When dealing with someone on credit, it is important to inform them of the termination so that they do not continue to extend credit to the agent after the agency has ended. Similarly, when an agent has been specially accredited to deal with a particular third party, it is necessary to let that party know when the agent's authority has been revoked. Finally, when an agent has already begun to deal with a third party, the principal should know that it is important to inform the third party of the termination of agency to avoid any confusion or misunderstandings.

Under the Second Restatement, Except in Cases of Death or Incapacity