How can an agency relationship be terminated?

An agency relationship can be terminated through various methods, and option B correctly outlines these methods.

Mutual agreement is one approach, where both the agent and the principal voluntarily decide to end their relationship. This reflects the principle that agency relationships are fundamentally based on mutual consent and can be dissolved when both parties agree that it is in their best interest to do so.

Completion of purpose refers to circumstances where the specific tasks or objectives that created the agency relationship have been fulfilled. Once the agreed-upon objectives are achieved, the agency relationship automatically concludes, as there is no longer a purpose for it to exist.

Expiration of time indicates that if the agency agreement was established for a predetermined period, it will terminate upon reaching that time frame. This ensures that any arrangements made were intended to last only for a specified duration.

Unilateral termination, while sometimes contentious, is also a valid means of ending an agency relationship. Either the principal or the agent can terminate the relationship independently, provided that the termination does not violate any terms of the agency agreement or result in harm that could lead to potential liability.

The other options do not encompass the full range of methods available for terminating an agency relationship. For instance, claiming that termination can occur only by unilateral decision or solely due