Circumstance when the principal is not allowed to unilaterally terminate an agency contract

In relation to the law of agency, explain two circumstances when the principal is not allowed to unilaterally terminate an agency contract.

Two circumstances when the principal is not allowed to unilaterally terminate an agency contract

Circumstance when the principal is not allowed to unilaterally terminate an agency contract

  • Dishonesty/untrustworthiness of the agent
  • Misconduct or habitual intoxication of the agent which interferes with principal employment.
  • The refusal of the agent to obey reasonable instructions or to permit the principal to make a proper audit of the accounts.
  • The agent failure to pay indebtedness owing to the principal.
  • Disloyalty of the agent like using the agency to make secret profits.



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