Question

Generally, death or insanity of either party will ___ and immediately terminate the agency relationship. If performance becomes ___ , the agency relationship will terminate. A significant change in ___ may trigger termination of the agency if the agent can ___ infer that the principal will not want the relationship to continue. Bankruptcy of the ___ most likely will terminate the agency, but bankruptcy of the ___ may or may not terminate the agency. Finally, if the nationality of the two parties is different and those nations are ___ , the relationship is terminated because there is no way to legally enforce the rights of either party.

Fill in the blanks with words that would best complete the passage.

reasonably

circumstances

principal

impossible

in negotiations

at war

price

absolutely

probably

inconvenient

automatically

agent

Answer 1

Generally, death or insanity of either party will automatically and immediately terminate the agency relationship. If performance becomes impossible the agency relationship will terminate. A significant change in circumstances may trigger termination of the agency if the agent can resonably infer that the principal will not want the relationship to continue.Bankruptcy of the pricipal most likely will terminate the agency, but bankruptcy of the agent may or may not terminate the agency. Finally, if the nationality of the two parties is different and those nations are at war, the relationship is terminated because there is no way to legally enforce the rights of either party.