Which of the following is a condition that can lead to termination of an agency?

Prepare for the Law of Agency Test. Delve into multiple choice questions featuring hints and explanations. Sharpen your understanding of agency law and gear up for success!

The fulfillment of the agency's purpose is indeed a valid condition that can lead to the termination of an agency. When the specific goal or task for which the agency was created is completed successfully, there's typically no longer a need for the agency relationship to continue. This marks the natural conclusion of the agency's role, as the agent's responsibilities and the principal's expectations have been satisfied.

In the context of agency law, once the purpose is accomplished, both parties are released from their obligations, and the agency terminates automatically. This principle is rooted in the idea that the fundamental reason for the agency's existence has been achieved, thereby negating the need for ongoing representation.

Other scenarios, while they may influence the agency relationship, do not inherently lead to termination in the same direct manner as fulfilling the agency's purpose does.

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