Megan, Marcus, and Thomas own a confectionery partnership. They appointed John Rex to act as their agent. The business is doing well and producing attractive profits. John became insolvent. There was a discussion among the partners as to whether they should dissolve the partnership because their agent was now insolvent. Megan and Marcus believe in order for the business to continue, John must be fired. Thomas was the opposite view. Thomas advised the partners that since John was insolvent, by law the agency between them was terminated. The partners agree the agency between the partners and John Rex was terminated by law because of his insolvency.

Under the law of agency:

		A. Megan and Marcus are correct; the partnership can only continue if John is fired.
		B. Thomas is correct the agency is terminated by law because of Johns insolvency.
		E. The partners are not correct; the agency would ended by law if John had filed for bankruptcy.
		C.The partners are not correct; the agency can continue but by law they must fire John because of his insolvency..
		D. The partners are not correct; because the agency continues despite Johns insolvency.