In such a case, the distributor may have made significant investments in setting up or promoting distribution. Therefore, the contract can only be terminated after the expiry of a reasonable period of time and a reasonable period of notice. An agency contract to be executed for the benefit of the client can usually be terminated by the client at will. Similarly, a power of attorney that is merely an authority may be revoked at any time with or without giving reasons. 1. Performance of the contract: If the agency is for a specific purpose, the agency terminates when the object is fulfilled. Third parties who are not aware of the termination may reasonably assume that a former agent is still authorized. To protect third parties who rely on such a reasonable semblance of authority, the apparent authority of an agent often remains after termination. Thus, a former agent may be able to bind the client under his apparent authority even if the agency is terminated. In this case, there were indications of the following variety of circumstances: the title of Executive Vice President of Brown; the location of his office vis-à-vis the President; his frequent contacts with the President; the long course of business and negotiations; encouraging the president in Kanavos to deal with Brown; Brown`s earlier amendment of the agreement on behalf of the bank on important issues, namely the price to be paid by the bank for the shares and the redemption price; the size of the bank (fourteen or fifteen branches in addition to the main office); the secondary and non-fundamental change in the terms of the agreement, which the Bank has now rejected, measured against the context of the overall operation; and Brown`s vast operating power. All this together would support a determination of apparent authority.
If a senior manager is allowed to perform general management functions, as in this case, the public expects the company to be bound by commitments made on its behalf by those who claim to have the power and appear to have the power to accept convincingly. [Quote] Of course, this principle does not apply if, in the commercial context, the requirement of a certain authority is assumed, for example the sale of .B significant asset by a company or a transaction which, by its very nature, obliges the company to an obligation outside the scope of its ordinary business. The amending agreement of 16 July 1976 signed by Brown should have been admitted as evidence and a judgment should not have been rendered. If the agreement provides for the appointment of the staff member for a certain period, the agency shall automatically terminate on the expiry of that period. An agency relationship is formed between two parties when one party (the agent) agrees to represent another party (the client). A principal-agent relationship is fiduciary, which means it is based on trust. Usually, all employees who deal with third parties are considered agents. As such, an agency relationship is subject to labour law. But if a person does not have the power to act as an agent, or if an agent does not have the power to act in a certain way, is the principal exempt from all consequences? The answer depends on whether or not the agent has obvious authority, the situation in which a principal makes a third party believe that an agent is authorized to bind the principal, even if the agent does not have the actual power to bind the principal.
– that is, if the third party reasonably believes in the words of the customer, in writing or orally, or by his conduct, that he has actually consented to the actions of the agent. Apparent authority is a manifestation of authority communicated to the third person; It goes from the customer to the third party, not to the agent. Admittedly, the parties to an agency contract can terminate the contract. As with the establishment of the relationship, the agreement can be terminated explicitly or implicitly. The Agent may renounce the agency`s activities after reasonable notice to the Client. If the agency contract is concluded for a certain period, the representative must pay compensation to the client for the previous renunciation of the agency`s activity. A mediation contract is a general type of contract. As such, an agency can terminate in the same way as a contract, unless the agency is irrevocable. The relationship between the client and the representative may only be terminated by the act or agreement of the parties to the Agency or by the effect of the law[vi]. « It is deemed that, if it is proved that it existed, an organization continued in the absence of anything proving its termination, unless such a period has elapsed which nullifies the presumption. » The contractor`s obligation to act on behalf of the client ends with the termination of an agency. The time limit for termination of an agency may be set by a specific law or instrument.
The Agency may be terminated at any time and at any time by mutual agreement between the Client and his representative. Therefore, an agent`s authority expires if both the customer and the agent agree to terminate it. 7. Dissolution of a company: If a company, whether a client or a representative, is dissolved, the agency contract between them terminates. If the client or broker files for bankruptcy during the term of the contract, the agency will be terminated. If a licensee representing a broker files for bankruptcy, it will NOT affect the agency. If, in such a case, the document clearly and unambiguously states that an Agency is to terminate without action by the Client or Agent after the expiry of the period specified in the Document, the Agency will effectively terminate[vii]. If, after the expiry of the period provided for in the contract, the parties continue their relationship as principal and intermediary, the rebuttable presumption is established that their relations are governed by the original contract and that the contract is renewed for a similar period. For example, if the parties entered into a contract for one year and continued to act under the terms of the contract after one year, the court will assume that the parties actually intended to keep the contract alive for another year. The client must notify all relevant third parties when an agency relationship ends to ensure that the third parties do not mistakenly negotiate again with the representative acting on behalf of that client […].