TERMINATION OF AGENCY

An agency may be terminated by any of the following modes


1. Expiration of Period

If agency is formed for a fixed period it may come to an end on the expiry of the period even if the business is not completed.


2. By Mutual Consent

The agency can be dissolved at any time by the mutual consent between the principal and the Agent.


3. Death of Agent or Principal

The relation between an agent and a principal is entirely personal. So death of either dissolves the Agency.

Reading: Classes of Contract


4. Destruction of the Subject Matter

The agency dissolves if the subject matter of the agency is destroyed.

Illustration
If an agent is employed to sell a house, the agency terminates if the house is destroyed by fire.


5. Completion of Particular Job

If an agency is formed to carry on a particular under taking, it stands terminated on the completion of the particular job.


6. By Becoming Alien Enemy

The contract between the agent and the principal may be terminated by illegality, as where the agency involves dealings with enemy aliens.


7. By Insanity

When the principal has become insane the agency itself is automatically terminated, and the same is true where the agent becomes insane.


8. Revocation of Authority

The principal may terminate the agent’s real or actual authority at any time so when the principal revokes his authority of the agent, the agency is terminated.


9. Bankruptcy of Principal

The principal’s bankruptcy terminates the authority of the agent. This fact will thus dissolve the agency.


10. Winding up of Company

The principal or agent may terminates the agency at the winding up of the company.

Reading: Why eCommerce is so Important?

11. Termination of Authority

When the agent gives up his authority, the agency is terminated.

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