BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A contract of agency is a species of the general contract. As such, an agency may terminate in the same way as a contract is discharged except where the agency is irrevocable. The relation of principal and agent can only be terminated by the act or agreement of the parties to the agency or by operation of law.

Detailed explanation-2: -Death or insanity of the Principal or Agent: An agency is terminated automatically in the event of the death of the principal or the agent, or if either becomes insane. The principal’s insanity puts an end to the agency even though the agent has no notice of it.

Detailed explanation-3: -Below are common rules for terminating the agency relationship: Withdrawal by a Party, Termination by the Principal, Renunciation by Agent, Death or Incapacity of Agent, Death or Incapacity or Bankruptcy of the Principal.

Detailed explanation-4: -According to Section 201 of the Indian Contract Act, 1872, Termination of agency takes place in the following circumstances: By revocation of authority by the principal. By renunciation of his authority by the agent. On the performance of the contract of the agency.