An agency relationship is formed between two parties when one party (the agent) agrees to represent another party (the principal). A principal-agent relationship is fiduciary, meaning it is based on trust. Normally, all employees who deal with third parties are considered agents. As such, an agency relationship is governed by employment law.
There are many ways to terminate an agency relationship. Once the relationship is terminated, the agent no longer has authority to act for the principal. The principal is required to inform third parties (that dealt with the agent) that the agency relationship has been terminated. Ways to terminate an agency relationship include:
Laws that govern agency relationships are based on both contract and employment law. If an agency is wrongfully terminated, one party can sue the other for:
Termination of an agency relationship can be quite complex. Since both contract and employment law are involved in agency law, you should consult an experienced employment attorney to advise you on the best way to terminate an agency relationship without encountering legal pitfalls.
Last Modified: 01-15-2018 01:00 AM PSTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.