New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is not a valid reason for the

    termination of an agency?
    A Revocation of authority by the principal Correct Answer Incorrect Answer
    B Renunciation of the agency by the agent Correct Answer Incorrect Answer
    C Completion of the business of the agency Correct Answer Incorrect Answer
    D Either party being adjudicated bankrupt Correct Answer Incorrect Answer
    E The principal being convicted of a crime Correct Answer Incorrect Answer

    Solution

    Explanation: : Contract Act Section 201.   Termination of agency: An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of the agency; or by the business  of  the  agency  being  completed;  or  by  either  the  principal  or  agentdying  or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors.

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