In which situation would an agency relationship be automatically terminated?

An agency relationship is typically characterized by the principal granting authority to the agent to act on their behalf in certain transactions or dealings. One of the key factors that can lead to the automatic termination of this relationship is the completion of the specific task or purpose for which the agency was created.

In this context, if the property is sold to another party, the agency relationship is naturally concluded because the underlying purpose—facilitating the sale of that specific property—has been achieved. Once the transaction is complete, there is no longer a need for the agent to represent the principal in that specific matter, leading to an automatic termination of the agency relationship.

The other scenarios provided do not fulfill the criteria for automatic termination in the same manner. The decision of the agent to retire, the principal moving, or the agent failing a licensing exam might affect the agency relationship but do not result in automatic termination of agency duties in the same immediate way that the sale of property would.