Which act allows parties to mutually agree to terminate an agency relationship?

The act that allows parties to mutually agree to terminate an agency relationship is known as mutual consent. This concept hinges on the fundamental principle that both parties involved in the agency agreement—typically the principal and the agent—can come to a harmonious agreement to end their association.

Mutual consent is important because it emphasizes the voluntary nature of contractual relationships; an agency agreement is rooted in the parties’ willingness to work together. Therefore, either party can decide to dissolve the relationship, provided they both agree on this course of action. This can happen for various reasons, such as the completion of a particular task, the fulfillment of contractual obligations, or simply a change in circumstances that necessitates ending the relationship.

In contrast, other options like revocation refer to one party unilaterally terminating the agreement, which could create complications if the other party does not agree with that decision. Expiry generally denotes a termination based on the passage of time rather than an active decision by both parties. Completion suggests that the agency relationship ends when the specific task or objectives have been accomplished, but does not cover broader scenarios where both parties agree to part ways outside of task completion. Thus, mutual consent is the correct choice for indicating a collaborative termination of the agency relationship.