Identify two circumstances when an agency relationship might come to an end by an act of the parties
Circumstances when an agency relationship might come to an end by an act of the parties
- Agreement: Where the relationship is consensual, the parties therefore may enter into a new agreement to discharge the agency. Their mind must be ad idem.
- Withdrawal of contract consent: Is the termination of agency at the option of the other party. The agent may renounce the relationship while the principal may revote the same.
- Death of Either Party: The death of the principal or agent ends the relationship; because the obligations of agency are confident and not transferable.
- Insanity: The unsoundness of mind of either party terminates the agency relationship since the party loses its contractual capacity.
- Cessation of Emergency: Agency of necessity come to end when the circumstance creating the emergency cause and the party in possession is in position to seek instructions from the owner.
- Destruction of subject Matter: If the foundation of agency whether contractual or is not destroyed, the relationship terminates.
- Bankruptcy of the principal: The declaration of bankruptcy of the principal by court of competent jurisdiction terminates the agency relationship