Asked by Alexa Gonzalez on May 14, 2024
Verified
Gaye agrees to act as a sales agent for Homewood Company on a commission basis. They further agree that either party can terminate the agency relationship at will. If Homewood ends their deal, the act of termination is called
A) repudiation.
B) ratification.
C) renunciation.
D) revocation.
Revocation
In contract law, the withdrawal of an offer by an offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability.
- Determine the circumstances leading to the cessation of agency relationships and recognize their resultant effects.
Verified Answer
NR
Naomi RuhmanMay 19, 2024
Final Answer :
D
Explanation :
Revocation is the correct term when a principal, in this case, Homewood Company, decides to terminate the agency relationship that it has with its agent, Gaye. This term specifically refers to the principal's act of ending the agency agreement before its term or purpose is accomplished.
Learning Objectives
- Determine the circumstances leading to the cessation of agency relationships and recognize their resultant effects.
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