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.