Ways through which an agency relationship might be terminated

Explain six ways through which an agency relationship might be terminated

Ways through which an agency relationship might be terminated

  • 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 consent: This is termination of agency at the option of other party. The agent may renounce the relationship while the principal may revoke the same.
  • Death of either party: The death of principal or agent ends the agency relationship. This is because the obligations of agency are confidential and not transferable.
  • Performance: Execution to the Agent’s authority in full terminates the relationship as the obligation has been discharged. The contract if any is discharged by performance.
  • Lapse of time: An agency relationship terminates on expiration of the duration stipulated or implied by trade usage or custom.
  • Bankruptcy of the principal: The declaration of bankruptcy of the principal by a court of competent jurisdiction terminates the agency relationship.
  • Cessation of emergency: Agency of necessity comes to an end when the circumstances creating the emergency ceases and the party in possession is in a position to seek instructions from the owner.



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