COMMERCIAL TRANSACTIONS 1.4 AGENCY-TERMINATION
- By the parties
- By operation of the law.
By the parties: may be unilateral or mutual. The agent can renounce the agreement or the principal can revoke the agency agreement or both may mutually bring it to an end. The notice must be made to the agent or the principal as the case may be. An agency coupled with an interest cannot be terminated. I.e. where authority is given as security for debts owed by the principal.
The notice of termination of an agent’s authority must be brought to the notice of the third party otherwise, the principal remains bound- Drew V. Nunn.
By operation of the law.
Maybe by lapse of time, by frustration, bankruptcy, insanity, death- See Drew V. Nunn. An agency coupled with an interest cannot be terminated even by death. Kiddel V. Fannel.
Consequences of termination.
The agent would get remuneration and reimbursement due as at the date of termination. Because termination is not retroactive. Morgan V. Manser. If after repudiation, the agent goes ahead to contract whit the third party, he would be taken to have contracted on his own behalf-Younge V. Toynbee.