Termination

Question 1

Principal-Agent Relationship Methods of Termination

Answer 1

(1) Lapse of time;
(2) happening of an event;
(3) change of circumstances
(4) breach of fiduciary duty
(5) unilateral act; or
(6) operation of law, such as death

Question 2

When an Agent’s Authority Terminates

Answer 2

An agent’s authority terminates when he or she knows or should have known of the termination.

Authority does not terminate as to third parties relying on the principal’s manifestation of the agent’s authority (except for death or incompetency).

Question 3

Agencies That Cannot be Unilaterally Terminated

Answer 3

(1) An agency coupled with an interest (such as a right to part of the proceeds of the sale); or
(2) where a power is given as a security (exercisable only on a default such as with deeds of trust)