ACCA Applied Skills · Corporate and Business Law (Global) · Agency law
Dalia appointed Evan as her agent for five years. After two years she wrongfully dismisses him without any breach by Evan, and the agency contract has no termination right. What is Evan's most likely remedy?
Evan can claim damages for breach of contract. Dalia has the power to end the agent's authority, so the agency ends, but doing so wrongfully without contractual right is a breach, and the remedy is compensation rather than forced continuation.
- ASpecific performance forcing Dalia to keep him as agent
- BA claim for damages for breach of the agency contractCorrect
- CNo remedy, because a principal may always revoke an agent's authority without liability
Explanation
A principal has the power to revoke authority, so the agency ends. But if this breaches the contract, the agent can claim damages for lost remuneration. Courts do not order specific performance of personal service-type relationships.
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