Ba--Termination Of Agency Relationship

Front 1

Termination--stages

Back 1

1. event of dissolution
2. Winding up
3. Distribution

Front 2

Termination--ways

Back 2

1. Expiration of Agency term
2. Accomplishment of agency purpose
3. Change in circumstances
4. by law--e.g.Death/Incapacity of either A or P
5. Mutual act or Agreement of parties

Front 3

Termination--Expiration of Agency term

Back 3

if time period is specified, terminates upon expiration of time period

if no time specified, reasonable time period is implied. determined by circumstances, including nature of the agency, likelihood of change in purposes, etc.

Notice required

Front 4

Term-Accomplishment of agency purpose

Back 4

when agency's purpose is accomplished, agency is terminated.

but A must have knowledge that the event has occurred

Front 5

Term--Change in circumstances

Back 5

1. loss or destruction of subject matter
-house destroyed by fire
2. change of circumstances affecting value
-a basic and unforeseen change of circumstances that substantialy affects the value of the subject matter, or otherwise makes it apparent that the P would not wish the a to proceed, A's authority is terminated.
-land is found to contain hazardous materials or minerals, authority to sell for certain amount terminated
-NOTICE required
also bankruptcy, impossibility, war
-

Front 6

Term--Death

Back 6

-Notice not required because it is public
-if A has warrants P's capacity, then A still liable

DEATH
-banks may continue paying checks until they receive notice
-M/S relationship-->if personal performance not required, then S may be obligated to continue

Front 7

Term--Incapacity

Back 7

P-->suspends A's authority to act for P during incapacity
A--incapacity to do acts required in agency performance will terminate or suspend authority to act for principal
INSANITY--permanent insanity will terminate agency

-in some cases, K may be binding on insane P's if (1) 3P is aware of insanity (2) transactions benefit P

insanity of A--when A is unable to understand the nature and consequences of his actions, A can no longer bind the P, but an insane person can be an A if he understands the particular transaction.

Front 8

Term--apparent authority

Back 8

not necessarily terminated
-3P entitled to notice
-P has duty to give notice to 3P
-without notice, P will be bound but can come after A for acting outside his authority.

Front 9

Term--Mutual act or Agreement of parties

Back 9

1. A terminates
2. P revokes

Front 10

Term--Mutual act or Agreement of parties--exception when agency is coupled with an interest authority cannot be revoked.

Back 10

1. power or authority was granted to secure performance of a duty or to protect the title of the A or some third person
2. It was given when the duty or title was created and it was supported by consideration.