Upon the termination of an agency,the agent's actual authority ceases.However,his apparent authority may continue until actual notice of the termination is given to third parties.

Question

Quizplus · Accepted Answer

This statement is true. When an agency is terminated, the agent no longer has actual authority to act on behalf of the principal. However, if the agent's actions created the appearance of authority, third parties may continue to rely on that appearance until they receive actual notice of the termination. This is known as apparent authority.

Upon the Termination of an Agency,the Agent's Actual Authority Ceases