(a) List five documents used in foreign trade. (b) Explain five conditions under which an agency may be terminated.

Answer Details

(a) Five documents used in foreign trade

1. Bill of lading
2. Certificate of origin
3. Commercial invoice
4. Indent (order)
5. Insurance certificate/policy

(Others acceptable: consular invoice, import/export licence, bill of exchange, letter of credit.)

(b) Five conditions under which an agency may be terminated

1. By mutual agreement: the principal and the agent may agree together to bring the agency to an end.
2. By performance/completion of the task: where the agency was for a specific transaction, it ends once that transaction is completed.
3. By expiry of time: if the agency was for a fixed period, it terminates automatically when that period expires.
4. By revocation or renunciation: the principal may withdraw the agent's authority, or the agent may give notice and renounce the agency.
5. By death, insanity or bankruptcy of either party: the agency ends if the principal or the agent dies, becomes insane or is declared bankrupt.

(The destruction of the subject matter or the business becoming unlawful also terminates an agency.)