Which Statement Is False Regarding Termination of Agency Based on Operation

Multiple Choice

Which statement is false regarding termination of agency based on operation of law?

A) Impossibility of performance terminates the agency relationship.
B) An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest.
C) The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal.
D) A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement.
E) If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates.