At what point can a principal or agent terminate the agency relationship?

The principal or agent can terminate the agency relationship at any time, which reflects the flexible nature of agency agreements. This rule reinforces the idea that the parties involved retain autonomy over their contractual commitments. Situations may arise where a principal no longer wishes to engage the agent, or the agent may decide they can no longer fulfill their duties. This freedom to terminate the relationship encourages both parties to communicate their needs and concerns without being locked into a prolonged commitment.

While some agency relationships have specific timeframes or conditions under which they can be terminated, the overarching principle is that termination can occur at any time, as long as it is done in good faith and without violating any contractual terms that may have been agreed upon. In contrast to this option, mutual agreements and legal constraints may govern certain specific circumstances, but they do not limit the inherent right of either party to end the relationship generally. This understanding reinforces the fundamental flexibility found in agency relationships.