Termination of Agency

Agency relationships end by agreement, performance, or operation of law.

• Completion of purpose
• Expiration of the agency agreement
• Mutual agreement of principal and agent
• Unilateral termination by principal (may result in liability)
• Renunciation by agent

• Death of the principal or agent
• Incapacity of the principal or agent
• Destruction or condemnation of the property
• Bankruptcy of the principal
• Illegality of purpose

• Agent’s authority ends immediately
• Confidentiality duties continue after termination
• Agent may be entitled to compensation if earned
• Principal may be liable for wrongful termination

• Actual notice to agent and third parties is recommended
• Apparent authority may continue without proper notice