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

Question 32

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. How can the company's agency contracts with the independent agents be legally terminated?


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

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