When the principal is trying to avoid being bound by the acts of the agent after the agency has ended, constructive notice is sufficient for:
A) persons who have dealt with the former agent.
B) persons who knew of the agency but had never dealt with it before termination.
C) persons who never knew of existence of the agency.
D) everyone who the principal was in contract with before the termination.

Question

Quizplus · Accepted Answer

An agent still may be able to bind the principal on contracts with third persons after termination of the agency if the third person is unaware that the agency has ended. To avoid being bound by acts of the agent after termination, the principal must give actual notice to those who have dealt with the former agent. Constructive notice is sufficient for persons who may have been aware of the agency but have never formally dealt with it.

When the Principal Is Trying to Avoid Being Bound by the Acts