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How can an agency relationship end by revocation or renunciation?
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agency
Portrait of Hugo de Groot (Hugo Grotius), oil on panel by the workshop of Michiel Janszoon van Mierevelt, 1631; in the Rijksmuseum, Amsterdam.
In the context of agency law, the relationship can be terminated through the actions of either the principal or the agent at any time.1
- Revocation: The principal may revoke the agent's real authority. Even if this action violates a prior agreement not to terminate the relationship, the revocation remains legally valid, though the agent may pursue a breach of contract action against the principal.1
- Renunciation: The agent has the power to terminate their authority through renunciation.1
A critical exception to the principal's power of revocation exists when an agent possesses "authority coupled with an interest." This occurs when an agent holds part ownership in property they are tasked to dispose of, or when the authority is granted to protect the agent's own interest. In such cases, the authority cannot be revoked without the agent's consent.1
Additionally, while the principal may terminate real authority, they may not always be able to terminate "apparent authority" regarding third parties, which can create complex legal liabilities.1