Termination of Agency
Agency can come to an end due to many different circumstances. Below are reasons for the Termination of Agency;
1. Bankruptcy of the Principal: When the principal cannot meet his financial obligations the agency can come to an end.
2. Insanity of Agent or Principal: If the principal or agent is insane, the agency contract will come to an automatic end.
3. Death of Either of the Parties: The death of the agent will bring the agency contract to an end.
4. By Mutual Agreement: In a situation where both the principal and agent agree to end the contract then this will be a binding discharge.
5. By Completion of the Agreement: It can come to an end if the specific purpose for which the agreement is created is accomplished.
6. Breach of Contract: A party to the agency contract may fail to perform part of his own side of the contract.
7. Frustration of the Agency: An agency agreement can be terminated if the subject matter is destroyed or frustrated.
8. Illegality of the Object: In the event of the business been illegal, the contract is automatically terminated by law.
9. By Lapse of Time: An agency can be terminated if the period fixed for the agreement comes to an end.