Under what conditions might an agent’s authority be revoked?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

An agent's authority might be revoked under conditions such as when the principal decides to end the relationship, when the principal or the agent becomes incapable of fulfilling their duties (for instance, due to legal incapacitation), or through mutual agreement between the principal and the agent to terminate the agency. This flexibility recognizes the dynamic nature of agency relationships and allows for revocation based on changes in circumstance, mutual consent, or the principal's discretion.

The other possibilities present limitations that do not encompass the full scope of how authority can be revoked. For instance, the idea that revocation only happens upon the agent's request suggests a level of agency that is not typically present, as the principal holds the ultimate authority in this relationship. Similarly, defining revocation solely due to unethical actions of the agent does not account for the many other valid reasons the principal might choose to end the agency. Lastly, indicating that revocation occurs only when an agency contract expires disregards situations where a principal may choose to terminate the agreement before its natural conclusion, particularly if circumstances change significantly.

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