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Termination of Agency

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ALPHA COLLEGE OF TECHNOLOGY COLLABORATION WITH INTERNATIONAL UNIVERSITY COLLEGE OF TECHNOLOGY TWINTECH SUBJECT NAME: BUSINESS LAW SUBJECT CODE: LAW2013 TERMINATION OF AGENCY PREPARED BY: NAME: MOHAMAD AL-HAFIZ BIN SALLEH MATRIC NO.: 10071260 NAME: SITI RAHIMAH BINTI RAZMAN MATRIC NO.: 10071260 NAME: NURUL ASHIKIN BINTI MD. YUSOF MATRIC NO.: 10071260 NAME: KHATIJAH BINTI AHMAD MATRIC NO.: 10071260 NAME: LYANA NADIA BINTI SALAHUDIN MATRIC NO.: 10071260 SEMESTER 4 2011/2012 ABSTRACT An agent's authority can be terminated at any time. If the trust between the agent and principal has broken down, it is not reasonable to allow the principal to remain at risk in any transactions that the agent might conclude during a …show more content…

By frustration Section 154 and 163 of the contract act 1950 deal with manner in which an agent’s authority may terminate. The said section provides as follows: 154. An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of the agency; or by the business of the agency being completed or by either the principal or agent dying or becoming sound mind; or by the principal being adjudicated or declared a bankrupt or an insolvent. Termination of agency, where agent has an interest in subject matter 155. Where the agent has himself an interest in the property which form the subject-matter of the agency, the agency cannot, in absence of an express contract be terminated to the prejudice of such interest. Illustration a. A give authority to B to sell A’s land, and to pay himself, out of proceeds, the debt due to him from A. A cannot revoke this authority, nor can it be terminated by his unsoundness of mind or death. When principal may revoke agent’s authority 156. The principal may save as is otherwise provided by the last preceding section; revoke the authority given to his agent at any time before the authority has been exercised so as to bind the principal. Revocation where authority has been partly exercised 157. The principal cannot revoke the authority given to his agent after the authority has been partly exercised so far as regards such acts and obligations as arise from acts already done in the

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