Agency may be terminated at any time by

Rationale

Agency may be terminated at any time by mutual agreement.

Mutual agreement between the parties involved is a fundamental principle in contract law, allowing both the principal and the agent to agree to terminate the agency relationship at any time. This ensures that both parties retain control over the continuation or cessation of the agreement.

A (discovery of major defect) YOUR ANSWER

The discovery of a major defect may provide grounds for termination in specific contexts, especially in contracts involving goods or services. However, it does not universally allow for termination of an agency agreement unless explicitly stated in the contract. This option is context-dependent and does not reflect a general principle applicable to all agency relationships.

B (payment of cancellation fee) YOUR ANSWER

While a cancellation fee may be stipulated in some agency agreements, it does not inherently allow for termination at any time. The requirement to pay a fee may impose conditions that restrict immediate termination, making it an unreliable choice for the question posed.

C (disclosure of conflict) YOUR ANSWER

Disclosure of a conflict can lead to termination of an agency relationship if the conflict is serious enough to affect the agent's ability to act in the principal's best interest. However, this does not imply termination is possible at any time, as it typically requires a specific set of circumstances. Thus, it does not represent a general rule applicable to all situations.

Conclusion

The ability to terminate an agency at any time through mutual agreement is a key aspect of agency law, emphasizing the autonomy and control both parties have over their arrangement. Other options—discovery of defects, payment of fees, and disclosure of conflicts—do not universally provide the same level of flexibility and are contingent upon specific conditions or circumstances. Thus, mutual agreement stands out as the correct and most applicable answer.

Agency may be terminated at any time by

Agency may be terminated at any time by mutual agreement.

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