An agency can be terminated by

All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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99.

An agency can be terminated by

A: Agreement between parties

B: By renunciation by the agent

C: By completion of business of agency

D: All the above

The answer is: D

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Explanation

The correct option is D: All the above.

An agency can be terminated by any of the following modes:

Agreement between parties: The principal and the agent can mutually agree to end the agency relationship at any time. This is also known as revocation by consent.

By renunciation by the agent: The agent can also terminate the agency by renouncing his authority and giving notice to the principal. This is also known as revocation by the agent.

By completion of business of agency: The agency can also terminate automatically when the purpose for which it was created is fulfilled or accomplished. This is also known as revocation by performance.

Apart from these modes, there are some other situations that can also terminate an agency by operation of law, such as death, insanity, insolvency, or change of circumstances of either party.