How can a principal extinguish an agent's apparent authority?
What will be an ideal response?
If a principal fails to give the proper notice of termination to a third party, the agent still has apparent authority to bind the principal to contracts with these third parties. To avoid this liability, the principal needs to provide the following notices:
1. Direct notice of termination to all persons with whom the agent dealt. The notice may be oral or written unless required to be in writing.
2. Constructive notice of termination to any third party who has knowledge of the agency but with whom the agent has not dealt.
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