1. In which of the following situations would a contract most likely NOT be terminated?
a schoolteacher lets her teaching license lapse
a horse owner who contracts with a farmer suddenly has ethical questions about the practice
a man adjudged mentally insane cannot perform his job as contracted
a family that contracts with a daycare for daily childcare files for bankruptcy
2. _______ can be conferred by industry, custom, or prior dealing between the parties.
Apparent agency
Express agency
Implied agency
Agency by ratification
3. Which of the following is one of the duties of the principal in an agency relationship?
duty to perform
duty to notify
duty to compensate
duty to account