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Overview — Termination of agency
Roger Wade, Director, WadeLegal
Termination by agreement, revocation, or operation of law
An agency agreement can be terminated in several different ways.
The principal and agent may mutually agree to terminate the agency agreement. The agreement may also provide the grounds for termination by one party, for example, because of default.
Sometimes the agreement will specify a time frame for the agent to complete its task, for example, a real estate agent may be given 45 days to sell the principal’s property. If there is no set period for when the agency agreement will end, the principal can terminate the agency by giving the agent a reasonable period of notice.
An agency agreement will also end if either the principal or agent dies or one party becomes bankrupt.
See Termination by agreement, revocation, or operation of law.
Effects of termination
Once terminated, the agent no longer has authority to act on behalf of the principal, and third parties who may have been dealing with the agent should be notified that the agency has come to an end.
See Effects of termination.
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