An agency relationship is always terminated by insolvency on the part of either the principal or agent.

Question

Quizplus · Accepted Answer

An agency relationship is not always terminated by the insolvency of either the principal or agent. The continuation of the agency relationship depends on the nature of the agency, the terms of the agreement, and relevant laws. Insolvency may affect the ability to perform under the contract, but does not automatically terminate the agency relationship.

An Agency Relationship Is Always Terminated by Insolvency on the Part