Question

An agency coupled with an interest means: Select one: a. either party may terminate the agency at any time. b. the agency may not be able to recover the debt in the event of the principal's death. c. the agency is irrevocable without the consent of the agent. d. each party has the power to terminate without breach of contract if done so within 18 months.

Answer 1

Answer:

c. the agency is irrevocable without the consent of the agent.

Explanation:

An agency is a fiduciary relationship in which an individual is appointed as the agent to act for a specific purpose or reason on behalf of another, who is the principal. Basically, in agency the agent is typically acting under the influence or control of his or her principal and as such can be a notable representative of the principal in any capacity deemed fit legally.

Also, the principal could be a corporation, an organization or a limited liability company (LLC) and not necessarily a single individual.

An agency coupled with an interest means the agency is irrevocable without the consent of the agent because the relationship that exists between them is a contractual one.

Hence, the agency is irrevocable before its expiration or without the consent of the agent.

Additionally, death, bankruptcy, and mismanagement by the principal cannot end or terminate an agency coupled with an interest until the agent is able to realize his or her legal interest.