Adya loaned $300 from Olga to buy a phone. He gave Olga the authority to sell his music system if he failed to pay her back $300. He failed to pay back the loan as promised. Under these circumstances, _____.

Question

Quizplus · Accepted Answer

This scenario is an example of an agency coupled with an interest. Under the given circumstances, Adya gave Olga authority as his agent to sell his music system to satisfy her claim in the event that he failed to pay back the loan. He cannot revoke Olga's power to sell the music system. Even his death will not terminate the agency as long as the debt is unpaid.

Adya Loaned $300 from Olga to Buy a Phone