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An agency comes to an end:-
- a)By performance of contract
- b)By agreement between the principal and the agent
- c)By renunciation of his authority by the agent
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
An agency comes to an end:-a)By performance of contractb)By agreement ...
Reasons for an agency to come to an end:
- By performance of contract: When the agency contract is completed, the agency automatically comes to an end. This is the most common way for an agency to terminate.
- By agreement between the principal and the agent: Both parties can mutually agree to terminate the agency relationship at any time. This can be done through a written agreement or a verbal understanding.
- By renunciation of his authority by the agent: If the agent decides to renounce his authority or resign from the agency, the agency relationship will come to an end. The agent must notify the principal of his decision to resign.
Therefore, all of the above reasons can lead to the termination of an agency relationship. It is important for both parties to follow the proper procedures outlined in the agency contract to ensure a smooth and legal termination.
Most Upvoted Answer
An agency comes to an end:-a)By performance of contractb)By agreement ...
Understanding Termination of Agency
The termination of an agency can occur through various means, each highlighting the dynamic nature of the principal-agent relationship. Here’s a detailed explanation of the options that lead to the end of an agency:
1. By Performance of Contract
- The agency relationship concludes when the agent successfully fulfills the duties assigned by the principal.
- Once the objectives are achieved, the purpose of the agency is served, leading to its natural termination.
2. By Agreement Between the Principal and the Agent
- Both parties can mutually agree to terminate the agency at any time.
- This agreement might be formalized in writing or can be an informal understanding, but it must be clear that both parties consent to the dissolution.
3. By Renunciation of His Authority by the Agent
- An agent has the right to renounce their authority and withdraw from the agency relationship.
- This can happen for various reasons, such as personal choice or external circumstances, which may hinder the agent's ability to perform.
4. Conclusion: All of the Above
- Each of the aforementioned points showcases valid methods through which an agency can be terminated.
- Therefore, the correct answer is option 'D', as all listed circumstances are legitimate grounds for ending the agency relationship.
Understanding these mechanisms is crucial for both principals and agents in navigating their legal and contractual obligations effectively.
The termination of an agency can occur through various means, each highlighting the dynamic nature of the principal-agent relationship. Here’s a detailed explanation of the options that lead to the end of an agency:
1. By Performance of Contract
- The agency relationship concludes when the agent successfully fulfills the duties assigned by the principal.
- Once the objectives are achieved, the purpose of the agency is served, leading to its natural termination.
2. By Agreement Between the Principal and the Agent
- Both parties can mutually agree to terminate the agency at any time.
- This agreement might be formalized in writing or can be an informal understanding, but it must be clear that both parties consent to the dissolution.
3. By Renunciation of His Authority by the Agent
- An agent has the right to renounce their authority and withdraw from the agency relationship.
- This can happen for various reasons, such as personal choice or external circumstances, which may hinder the agent's ability to perform.
4. Conclusion: All of the Above
- Each of the aforementioned points showcases valid methods through which an agency can be terminated.
- Therefore, the correct answer is option 'D', as all listed circumstances are legitimate grounds for ending the agency relationship.
Understanding these mechanisms is crucial for both principals and agents in navigating their legal and contractual obligations effectively.
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An agency comes to an end:-a)By performance of contractb)By agreement between the principal and the agentc)By renunciation of his authority by the agentd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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