1. Which of the following automatically terminates an agency?
(A) Mutual agreement
(B) Appointment of a new agent
(C) Change of address
(D) Death of principal
2. When the agent ends the agency by giving notice, it is called:
(A) Revocation
(B) Renunciation
(C) Rescission
(D) Discharge
3. The principal may end the authority of the agent by:
(A) Revocation
(B) Ratification
(C) Sub-agency
(D) Indemnity
4. Agency is terminated by operation of law in case of:
(A) Disagreement
(B) Delay in performance
(C) Insolvency of principal
(D) Minor breach
5. Destruction of the subject matter of the agency leads to:
(A) Automatic termination
(B) Modification
(C) Renewal
(D) Extension
6. When the principal becomes insane, the agency is:
(A) Suspended temporarily
(B) Continued until notice
(C) Terminated
(D) Modified
7. Termination must be communicated to which party for legal effect?
(A) Third parties who dealt with the agent
(B) Government
(C) Public at large
(D) Competitors
8. An agency coupled with an interest:
(A) Is valid only for one year
(B) Ends automatically
(C) Cannot be revoked by principal alone
(D) Is illegal
9. Change of law that makes the agency illegal results in:
(A) Termination
(B) Suspension
(C) Renewal
(D) Waiver
10. If an agency is created for a specific period, it ends by:
(A) Expiry of time
(B) Breach
(C) Mutual consent
(D) Renunciation
11. Termination by mutual consent is also called:
(A) Rescission
(B) Agreement
(C) Frustration
(D) Substitution
12. When the agent commits a serious breach of duty, the principal may:
(A) Terminate the agency
(B) Ratify the breach
(C) Extend the agency
(D) Insure the contract
13. Agency ends automatically if the agent:
(A) Marries
(B) Changes residence
(C) Becomes insane
(D) Takes leave
14. Agency can end due to frustration when:
(A) Purpose becomes impossible
(B) The agent refuses minor tasks
(C) Agent demands higher payment
(D) Principal hires assistant
15. If either party becomes bankrupt, the agency:
(A) Ends automatically
(B) Continues
(C) Must be renewed
(D) Needs court approval
16. Revocation of agency without proper notice may make the principal liable for:
(A) Fraud
(B) Conversion
(C) Tort
(D) Breach of contract
17. Renunciation without reasonable notice may make the agent liable for:
(A) Criminal punishment
(B) Damages
(C) Political penalty
(D) Compensation from government
18. Agency created for a specific business transaction ends when:
(A) Principal changes plans
(B) The agent takes leave
(C) A new agent is hired
(D) The contract is completed
19. A minor change in circumstances normally:
(A) Terminates agency
(B) Extends agency
(C) Makes agency void
(D) Does not terminate agency
20. Termination due to destruction of goods involved in the agency is known as:
(A) Revocation by principal
(B) Renunciation
(C) Agreement
(D) Frustration
21. Notice of termination given only to the agent is:
(A) Sufficient for all legal purposes
(B) Illegal
(C) Required to be published
(D) Not sufficient for third parties
22. Death of the agent results in:
(A) Modification
(B) Renewal
(C) Automatic termination
(D) Suspension
23. If a principal revokes authority before the agreed time, he may be liable for:
(A) Criminal breach
(B) Government fines
(C) Civil damages
(D) Termination fee
24. When the purpose of the agency is achieved, the agency is:
(A) Considered void
(B) Renewed
(C) Suspended
(D) Terminated
25. The end of an agency due to a principal’s withdrawal of consent is called:
(A) Revocation
(B) Dissolution
(C) Alteration
(D) Assignment