Upon the termination of an agency, the agent's actual authority ceases. However, apparent authority may continue until actual notice of the termination is given to third parties.

Question

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Upon termination of an agency, the agent's actual authority to act on behalf of the principal ceases immediately. However, the agent may retain apparent authority, meaning they appear to still have the authority to act on behalf of the principal, until third parties are notified of the termination. This is to protect third parties who are unaware of the termination and might still believe the agent has the authority to act.

Upon the Termination of an Agency, the Agent's Actual Authority