Asked by Bella Carranza on May 25, 2024
Verified
Insolvency automatically results in termination of an agency relationship.
Insolvency
A financial state where an individual or entity cannot meet their debt obligations as they become due.
- Understand termination conditions and consequences of agency relationships.
Verified Answer
PD
Pharmacist DanyalMay 25, 2024
Final Answer :
False
Explanation :
If the principal or agent files a bankruptcy petition,the agency relationship is generally no longer in existence.Insolvency,which is defined as the inability to pay debts or the condition of liabilities outweighing assets,does not necessarily result in the termination of an agency relationship.
Learning Objectives
- Understand termination conditions and consequences of agency relationships.