An agency relationship may terminate in any of the following ways: –


Where the relationship is consensual, the parties therefore may enter into a new agreement to discharge the agency. Their mind must be ad idem

Withdrawal of Consent

This is termination of agency at the option of other party. The agent may renounce the relationship while the principal may revoke the same. However, agency is irrevocable if: –

  1. The agent has exercised his authority in full.
  2. The agent has incurred personal liability
  • The agent authority is coupled with interest

Death of Either Party

The death of principal or agent ends the agency relationship. This is because the obligations of agency are confidential and not transferable.


Execution of the agent’s authority in full terminates the relationship as the obligation has been discharged. The contract if any is discharged by performance.

Lapse of Time

An agency relationship terminates on expiration of the duration stipulated or implied by trade usage or custom.


The unsoundness of mind of either party terminates the agency relationship since the party loses its contractual capacity.

Bankruptcy of the Principal

The declaration of bankruptcy of the principal by a court of competent jurisdiction terminates the agency relationship

Frustration of Contract

Agency related by agreement or contract comes to an end when the contract is frustrated.

Destruction of Subject Matter

If the foundation of agency whether contractual or not is destroyed, the relationship terminates.

Cessation of Emergency

Agency of necessity comes to an end when the circumstances creating the emergency cease and the party in possession is in a position to seek instructions from the owner.

Cessation of Cohabitation

Agency by presumption from cohabitation comes to an end when the parties cease to cohabit, whether voluntarily, judicial separation or by a decree of divorce.

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