Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal's property that passes to the bankruptcy trustee.

Question

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Under the Second Restatement of Agency, the bankruptcy of the principal automatically terminates the agent's authority over the principal's property that is transferred to the bankruptcy trustee, as the trustee assumes control over the property.

Under the Second Restatement, the Bankruptcy of the Principal Terminates