Lewis employs Donna under a one-year contract to sell Lewis's line of leather wallets and checkbook covers. If without Donna's knowledge, Lewis dies:
A) under the Second Restatement, Donna's actual authority will not terminate until the end of the one-year contractual term.
B) under the Second Restatement, Donna's actual authority will not terminate until she has notice of Lewis's death.
C) under the Third Restatement, Donna's actual authority will not terminate until she receives notice of Lewis's death.
D) under both the Second and Third Restatements, Donna's actual authority will terminate at either the end of her one-year contractual term or when she receives notice of Lewis's death, whichever occurs first.
E) under both the Second and Third Restatements, Donna's actual authority will terminate upon Lewis's death, whether she has notice or not.

Question

Quizplus · Accepted Answer

The Third Restatement of Agency provides that the authority of an agent terminates upon the death of the principal, except that the agent's authority continues for acts that are appropriate to accomplish the purposes of the agency until the agent receives notice of the principal's death. Therefore, Donna's actual authority will not terminate until she receives notice of Lewis's death.

Lewis Employs Donna Under a One-Year Contract to Sell Lewis's