Question

Mike is an agent making purchasing orders for Tami. Tami passes away before the agency contract is voluntarily ended. Mike has already done most of the work Tami assigned. What result related to the status of the agency? A. Agency is terminated by law. B. Agency is terminated by incapacity C. Agency is terminated by fulfillment. D. Agency is not terminated; terms of the agency must be resolved by Tami's estate.

Answer 1

Answer:

B. Agency is terminated by incapacity.

Explanation:

• The agency contract is a legal agreement that is were the first party agrees to the actions of the second party and the power of the agent is bound to the agreements of the principle. The principle is responsible for the agents and running the agency.

• The termination of the agency is due to the death or the incapacity of the individual or else the agency may be terminated by law.