HOW DO YOU EXTINGUISH CONTRACT OF AGENCY?

Aside from extinguishing contract of agency, you may also read: WHAT IS AGENCY TO SELL?

• Agency may be terminated by agreement of the parties.

• Agency may also be terminated by the subsequent acts of the parties.

• Agency may likewise be terminated by operation of law.

An agency does not last forever. The agency agreement may be terminated in different ways.

Civil Code provides that:

 “Agency is extinguished:

1. By its revocation;
2. By the withdrawal of the agent;
3. By the death, civil interdiction, insanity or insolvency of the principal or of the agent;
4. By the dissolution of the firm or corporation which entrusted or accepted the agency;
5. By the accomplishment of the object or purpose of the agency;
6. By the expiration of the period for which the agency was constituted.”

 To simplify, agency may be terminated:

1. by agreement
2. by the subsequent acts of the parties which may be either:
   1. by the act of both parties or by mutual consent; or
   2. by the unilateral act of one of them; or
3. by operation of law

When once shown to have existed, an agency relation will be presumed to have continued, in the absence of anything to show its termination. The party who claims that the agency has been revoked or terminated will have the burden of proving it.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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