|
First Principles of Business Law |
| The law of agency |
|
11. Termination of agency |
|
11.4. Mental incapacity and death of the principal |
|
Read the facts below (which are the same as in the previous question) and then answer the questions. A owns a house which she wishes to sell. She appoints B as her agent, to find a buyer for the house. The agency agreement is in writing and one of the terms is that the period of the agency is for six weeks from the date of signing the agreement. A and B sign the agreement on June 1. |
|
1. If, after appointing B, A is affected with a sudden mental illness that seriously affects her awareness and judgement, does this affect the continuation of B's power to represent A? 2. If, the day after appointing B as her agent, A dies in a traffic accident, does A's death automatically terminate B's agency? |
 |
 |
|
|
|