What is Termination of agency?
In short
An agency ends by act of the parties, such as fulfillment of its purpose, expiry, mutual agreement, revocation by the principal or renunciation by the agent, or by operation of law, such as death, insanity or bankruptcy of either party.
Key takeaways
- Apparent authority can continue until third parties who dealt with the agent are notified.
- Death of the principal ends actual authority immediately, even without notice.
- An agency coupled with an interest isn't ended by the principal's revocation or death.
Where it's tested
REG: Business Law: Agency & Business Structures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A principal fires an agent but does not notify a long-standing supplier who had regularly dealt with that agent. The former agent places an order with the supplier in the principal's name. Who is liable to the supplier?