Which Of The Following Will Terminate An Agency AgreementOctober 16, 2021 2:37 am
7. Dissolution of a company: If a company, whether by a client or an agent, is dissolved, the contract between them terminates. [viii] agency.uslegal.com/duration-and-termination-of-agency/. If the agreement provides that the Agency terminates with the occurrence of a particular event, the Agency terminates with the occurrence of the specified event. Admittedly, the parties to an agency contract can terminate the contract. As with the establishment of the relationship, the contract can be terminated explicitly or implicitly. An agency contract is a general type of contract. As such, an agency can terminate in the same way as a contract, unless the agency is irrevocable. The relationship between the client and his authorized representative can only be terminated by the act or agreement of the parties to the agency or by the application of the law[vi].
“It is assumed that if it is proved that an organization existed, in the absence of anything that can prove its termination, unless such a period has elapsed for the presumption to be destroyed.” The agent`s obligation to act on behalf of the client expires upon termination of an agency. The time limit for termination of an agency may be set by a specific law or instrument. 3. Death or insanity of either party: The agency is terminated when the agent or client dies or becomes mentally ill. After the death of the agent or client, the agency is automatically terminated because a person cannot act on behalf of a non-existent person. Thus, when a client dies, the authority of his litigant also expires. Similarly, the relationship between the agent and the principal ends when the principal or agent goes crazy, because a person with an unhealthy mind cannot contract. Although the actual authority results from an agreement, the apparent authority is that which the law grants to the agent, although the principal may not have agreed that the agent had such a power.
If a senior executive is allowed to perform general management functions, as in this case, the public expects the company to be bound by obligations made on its behalf by those who claim to have authority and appear to have a convincing agreement.” [Quote] Of course, this principle does not apply if, in the commercial context, the requirement of a certain authority is assumed, for example the sale of .B tangible asset by a company or a transaction which, by its very nature, obliges the company to perform an obligation outside the course of its normal business. The amending agreement of 16 July 1976 signed by Brown should have been admitted as evidence and a judgment should not have been ordered.