Under the rule of the Third Restatement, if a principal becomes incapacitated, the agency relationship terminates and all authority ceases.

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Simply light · Accepted Answer

Final Answer : False, Explanation :  Under the Third Restatement of Agency, an agency relationship does not automatically terminate when the principal becomes incapacitated. The principal can establish a durable power of attorney that allows the agency relationship to continue despite the principal's incapacity.

Under the rule of the Third Restatement, if a principal becomes incapacitated, the agency relationship terminates and all authority ceases.

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