What can lead to the termination of an agency relationship?

An agency relationship can be terminated due to unforeseen events that impact the obligations of the parties involved. These unforeseen events could include natural disasters, changes in law or regulation, or the incapacity of a key individual. Such circumstances can fundamentally alter the ability of the agent or principal to fulfill their duties, rendering the continuation of the agency relationship impractical or impossible.

For instance, if an agent is unable to perform their duties due to a significant illness or if a new law makes the nature of their work illegal, the agency relationship would likely need to be terminated. This termination is often necessary to protect the interests of both parties and to comply with legal standards.

In contrast, a successful transaction completion and fulfillment of all duties wouldn't typically end an agency relationship; rather, they often signify that the relationship served its purpose. Regular communication is essential for a healthy agency relationship but, on its own, does not lead to its termination.