INTERNATIONAL UNIVERSITY COLLEGE OF TECHNOLOGY TWINTECH
SUBJECT NAME: BUSINESS LAW
SUBJECT CODE: LAW2013
TERMINATION OF AGENCY
NAME: MOHAMAD AL-HAFIZ BIN SALLEHMATRIC NO.: 10071260
NAME: SITI RAHIMAH BINTI RAZMANMATRIC NO.: 10071260
NAME: NURUL ASHIKIN BINTI MD. YUSOFMATRIC NO.: 10071260
NAME: KHATIJAH BINTI AHMADMATRIC NO.: 10071260
NAME: LYANA NADIA BINTI SALAHUDINMATRIC NO.: 10071260
SEMESTER 4 2011/2012
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 period of notice. An agency may come to an end in a variety of ways: (i) by the principal revoking the agency – However, principal cannot revoke an agency coupled with interest to the prejudice of such interest. Such Agency is coupled with interest. An agency is coupled with interest when the agent himself has an interest in the subject-matter of the agency, e.g., where the goods are consigned by an upcountry constituent to a commission agent for sale, with poor to recoup himself from the sale proceeds, the advances made by him to the principal against the security of the goods; in such a case, theprincipal cannot revoke the agent’s authority till the goods areactually sold, nor is the agency terminated by death or insanity. The principal also cannot revoke the agent’s authority after it hasbeen partly exercised, so as to bind the principal, though he can always do so, before such authority has been so exercised.
Further, as if the agency is for a fixed period, the principal cannot terminate the agency before the time expired, except for sufficient cause. If he does, he is liable to compensate the agent for the loss caused to him thereby. The same rules apply where the agent, renounces an agency for a fixed period. Notice in this connection that want of skill continuous disobedience of lawful orders, and rude or insulting behavior has been held to be sufficient cause for dismissal of an agent. Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice, will have to be paid. The revocation or renunciation of an agency may be made expressly or impliedly by conduct. The termination does not take effect as regards the agent, till it becomes known to him and as regards third party, till the termination is known to them. When an agent’s authority is terminated, it operates as a termination of subagent also.
Firstly we would thank the almighty GOD for giving us strength to complete the task which was assigned. We would also like to thank Business Law Subject for assigning us this project and giving us the opportunity to study about this topic which is considered to be the most important in the business law. We would also extend my gratitude to Mr. Afifi, Lecturer of Business Law for the help and support in the completion of our report. Lastly we would thank our parents and friends for all their support and help.
TABLE OF CONTENT
NO.| TITLE| PAGE|
1| ABSTRACT| i|
2| ACKNOWLEGDEMENT| ii|
3| INTRODUCTION| 1|
4| TERMINATION OF AGENCY| 2|
5 | CONCLUSION| |
Agency is the relationship of a person (called the agent) who acts on behalf of another person, company, or government, known as the principal. "Agency" may arise when an employer (principal) and employee (agent), asks someone to make a delivery or names someone as an agent in a contract. The basic rule is that the principal becomes responsible for the acts of the agent, and the agent's acts are like those of the. Agency is a relationship that is pivotal to or relevant to so many business and commercial transactions.
Under the law of agency, if a person is injured in a traffic accident with a delivery truck, the...