Contract of agency is whereby a person is bound by the principal to act, represent or speak for him in front of the third party and make decisions on behalf of the principal. A principal may hire an agent who will act as a principal and will be solely responsible for the decision he makes on the name of the principal (Mckendrick 2012,p. 5). There are three types of authority but an agency made with an agreement is an implied authority. Contract of agency can be helpful for big business official as they cannot be available anywhere, anytime.
The relationship with an agency can be terminated if the parties feel that the relationship is not going in a beneficial manner. There are various factors which can influence and terminate contract of
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Under Operation of Laws Contract of agency can be terminated if any one of principal or agent becomes ill or dies. If the company acting as principal or agent has been ceased, has become bank corrupt or dissolved in this case also the contract of agency may be terminated. The business being sold to another party and the agent is sacked by principal in this compensation has to be paid to the agent by the principal this can also be a reason where contract of agency maybe terminated. During the contract time period if either party is declared insane or mad with adequate medical records then the contract is termed void and contract of agency is terminated. Age is another factor which can lead to termination. If the principal sacks the agent for his age factor then agent can ask for compensation. Agents are always advised to get sacked so they can earn their compensation from the principal in case the agent resigns before the contract expiry no compensation will be paid by the principal. UK law has now agreed that 65 is the age at which the agent should retire. agreement Breach should not be done by both the parties if the agreement is broken by any party then it should not be tolerated and should call for termination of contract by either party. Fulfillment of objective for which the contract of agency was formed if the work is over for which the agency was established then the agency will