________ is allowed by a principal when an agent breaches an agency contract, which allows the principal to nullify at his or her discretion any contract the agent negotiated.
A) Avoidance
B) Indemnification
C) First refusal
D) Veto
E) Specific performance

Question

Quizplus · Accepted Answer

Avoidance is the correct term for when a principal is allowed to nullify contracts negotiated by an agent who has breached an agency contract. This gives the principal the discretion to void the contract due to the agent's failure to adhere to the terms of their agreement.

________ Is Allowed by a Principal When an Agent Breaches