Both parties to an agency may have the power to terminate the relationship but they may not have the right.

Question

Quizplus · Accepted Answer

This is true. While both parties may have the power to terminate the agency relationship, the right to do so may be limited by the terms of the agency agreement or by other legal obligations. For example, an agent may not have the right to terminate the agency relationship if they have not completed the tasks specified in the agreement, or if doing so would breach their fiduciary obligations to the principal. Similarly, a principal may not have the right to terminate the agency relationship if the agent has not breached their obligations or if doing so would result in an unfair loss or harm to the agent.

Both Parties to an Agency May Have the Power to Terminate