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Agency may be terminated at any time by

Rationale

Agency may be terminated at any time by mutual agreement by all parties to the contract.

Termination of an agency relationship can occur when all parties involved agree to conclude the arrangement. This mutual agreement allows for a flexible and consensual end to the agency, respecting the interests of both the principal and the agent.

A (discovery of a major defect in the property) YOUR ANSWER

While the discovery of a major defect in the property may lead to legal implications or renegotiations, it does not automatically terminate the agency relationship. Such defects may affect the terms of the contract or necessitate disclosure, but they do not constitute a direct cause for termination unless specified in the contract.

B (payment of a cancellation fee by the agent) YOUR ANSWER

The payment of a cancellation fee by the agent is not a standard method for terminating an agency agreement. While some contracts may include cancellation fees as part of their terms, this does not universally apply to all agency relationships and does not inherently grant the authority to terminate without mutual consent.

C (disclosure of a conflict of interest by the agent) YOUR ANSWER

Disclosure of a conflict of interest might lead to discussions regarding the continuation of the agency, but it does not automatically terminate the agency. The parties may choose to address the conflict rather than end the relationship, depending on the contract's terms and the parties' willingness to resolve the issue.

Conclusion

The termination of an agency relationship fundamentally relies on mutual agreement among all parties involved. While various circumstances can influence the relationship, such as conflicts of interest or property defects, they do not inherently allow for termination without the consent of all parties. Therefore, mutual agreement stands as the primary and straightforward means for concluding an agency.

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