Ade appointed Tayo as an agent to sell a specific commercial cargo vessel anchored at the Lagos seaport. Before Tayo could negotiate or finalize a sale with any prospective buyer, an unexpected fire outbreak at the port completely destroyed the vessel through no fault of either party. Which of the following legal statements correctly describes the status of this agency relationship?
- The agency is automatically terminated by operation of law due to the destruction of the subject matter.Cevap
- BThe agency relationship remains legally active until Ade issues a formal written notice of revocation to Tayo.
- CTayo remains personally liable to prospective buyers for breach of an implied warranty of authority.
- DThe agency is indefinitely suspended and automatically revives whenever Ade acquires a replacement vessel.
Cevap
The agency is automatically terminated by operation of law due to the destruction of the subject matter.
An agency relationship is automatically discharged by operation of law when performance becomes impossible due to the destruction of the subject matter. Because the specific cargo vessel was destroyed, the foundation of Tayo's authority ceased to exist, bringing the agency to an immediate legal end.
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Anahtar Kavram
Termination of Agency by Operation of Law (Frustration / Destruction of Subject Matter)
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