10. Which of the following is true of a constructive notice? A. Notice of termination of the agency relationship is provided eit
her orally or through writing. B. Notice of termination is made known to parties indirectly related to an agency agreement. C. It is made when the principal shares a gratuitous agreement with the agent. D. Third parties must receive direct information of the termination of the relationship.
Answer: B. Notice of termination is made known to parties indirectly related to an agency agreement.
Explanation:
The constructive notice is a legal term that reflects that someone has the knowledge of an event or transaction due to reasonable facts. The notice is kept in the public record. The principle on the basis of the premise that indicates that someone cannot deny the knowledge of the fact because the official duty will inquire about it.
B is the correct option this is because the parties are made aware indirectly about the notice. This can be done by publication of the agreement in the news paper in the area where the agreement exists.
