Agency, determination of

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Updated: Aug 20, 2021

An agency may be determined by express agreement. A special agent will cease to be an agent when he has completed the task for which he was employed. A universal agency will be terminated by agreement. The principal must remember that if a person has acted for him for some time or has been looked upon as his agent, then it may be necessary to give express notice to persons with whom the agent has dealt and perhaps general notice to the public, before the agency can be considered terminated (estoppel). The principal may otherwise continue to be responsible for debts incurred by the agent. Agency is automatically terminated by the death or bankruptcy of the principal or the agent (except that if the agent is bankrupt the agency may continue where he is still capable of acting as agent).

Reference: The Penguin Business Dictionary, 3rd edt.



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