Which is NOT listed as a termination method?

• A. The principal's revocation.
• B. The principal's desire to pay the agent a higher commission.
• C. The passage of time.
• D. The principal's death or suspension of powers.

Answer: (B)

Termination methods are events that end the agency relationship. The principal revoking authority ends it immediately, and the contract can also end by the passage of time when the term expires or is set to conclude. The principal’s death or suspension of powers makes it impossible for the principal to authorize further actions, so the agency ends as well. The principal’s desire to pay a higher commission, however, does not terminate the relationship by itself; it would be a change to the contract terms and would require a separate agreement or renegotiation. It doesn’t automatically end the agency.