Termination Of Contract Of Agency

A contract of agency is terminated in the following ways:

1. When the period of agency expires or
2. When the purpose of the agency is accomplished or
3. When the principal or agent dies or becomes of unsound mind
4. When the principal becomes insolvent
5. When the subject matter of the contract is destroyed
6. When the object of the contract becomes unlawful
7. When the agent renounces the authority
8. When the principal revokes his authority

The termination that takes effect so far as regards the agent, the moment, it becomes know to him and so far as regards third persons, the moment it becomes know to them. So, if an agent knowing the termination of agency, contracts with third persons who are not aware of the termination, the becomes liable to the principal for damages while the contract binds the principal and third persons.