Multiple choice

An agency is said to be irrevocable where agency cannot be terminated or put to an end. An agency is irrevocable in which of the following cases?

  1. Where the agency is coupled with interest and the interests exists before the creation of the agency or where the agent has incurred personal liability.

  2. Where the agency is coupled with interest but the interest arises after the creation of the agency or where the agent has incurred personal liability.

  3. Where the agent has incurred personal liability.

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An agency becomes irrevocable when coupled with interest, meaning the agent has a pre-existing interest in the subject matter, or when the agent has incurred personal liability. The timing matters - the interest must exist before or at agency creation, not after.

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