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None of the Contracts Between the Six Independent Manufacturer's Agents

Question 23

Multiple Choice

None of the contracts between the six independent manufacturer's agents and the ABC Company speak as to how the contracts can be terminated.All six agents have been doing a splendid job for several years in selling ABC's products.However,last week,ABC's board of directors decided to turn the selling function over to the company's own employees.This is to be completed within the next 30 days.Can the company's agency contracts with the independent agents be legally terminated,and if so,how?


A) Yes,they can be terminated by failing to renew the contracts upon expiration.
B) Yes,they can be terminated by declaring the company's sales project to be at an end.
C) No,they cannot be terminated without a breach and the resulting severance damages.
D) Yes,they can be terminated,since a reasonable time has passed for each agency contract.
E) Yes,they can be terminated by simply having the principal give notice that it wishes the relationship to come to an end; no other explanation is required.

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