First Principles of Business Law

11. Termination of agency

11.1  How an agent's power of representation is ended

Agency does not last forever. The relationship between a principal and an agent will sooner or later come to an end. There is more than one way that this can happen, depending on the circumstances.

• Completion of mandate
• Expiry of a fixed term
• Revocation of authority
• Renunciation of authority
• Terminating an irrevocable agency power
• Mental incapacity
• Death

In some cases, there is no argument about the termination of the agency. However, disputes may arise when the principal believes the agency has come to an end, but the agent continues to act on the principal's behalf, or vice versa. The following examples illustrate the various ways in which an agency relationship is brought to an end.