GAIL S.

DEDICATORIA BSA II-C

EXTINGUISHMENT OF AGENCY

Modes of Extinguishment of Agency

1. By revocation;
2. By withdrawal of the agent;
3. By the death, civil interdiction, insanity, or insolvency of the principal or the agent
4. By the dissolution of the firm or corporation which entrusted or accepted the
agency;
5. By the accomplishment of the object or purpose of the agency;
6. By the expiration of the period for which the agency was constituted.
An agency, like most consensual agreements, comes to an end at some point.
Termination can take place because of the deeds of the parties, or of something beyond
their control such as that mandated by law. Under the law, an agency may be
terminated:
1. By agreement
2. By the acts of the parties which may be either:
a. By the act of both parties or by mutual consent; or
b. By the unilateral act of one of them; or
3. By operation of law.

Modes provided not exclusive

An agency may also be extinguished by the modes of extinguishment of
obligations in general, when applicable, like loss of the thing and novation. Other
causes are change in law affecting the subject matter or transaction involved in the
execution of the agency, especially if it makes the required act illegal and change in
conditions not anticipated by the parties like the outbreak of war, preventing or making
impossible the accomplishment of the purpose of the agency.

Revocation by principal
1. Revocation concept
Revocation refers to the act of the principal of terminating the agency at
will confidence and representation being the foundation of the contract.

The principal may revoke the agency at will and compel the agent to
return the document evidencing the agency. The principal may revoke the
 agency at will since the authority of the agent emanates from the principal, it
is enough that the principal should wish to terminate the agency. Moreover,
confidence being the cardinal basis of the relation, it stands to reason that it
should cease when such confidence disappears.

2. Who may revoke the agency when there are two or more principals
When the power of attorney was granted for a common transaction, any
one of the principals may revoke the same without the consent of the others.
This is consistent with the solidary liability of the principals.

Liability of principal for damage caused by revocation

While the principal may have the absolute power to revoke the agency at any
time, he must respond in damages in those cases wherein not having the right to do so,
he should discharge the agent.
His power to revoke must be distinguished from his right to revoke. Thus, the
principal is liable in damages occasioned by the wrongful discharge of the agent before
the expiration of the period fixed. In such case, however, the action of indemnity would
not be derived from the law, but from the contract of the parties.