The Termination Of An Agency Agreement

The officer`s authority is extinguished when the officer becomes aware of the fact. However, the destruction of the object does not always entail the denunciation of the Agency, in particular where the object can be replaced without significant prejudice to one of the parties[xii]. In addition, a change in the law making the required act illegal may terminate an agency contract. If the authority or power of an agent is linked to an interest, it is not revocable by the act, condition, death or mental incapacity of the client before the expiry of the interest, unless otherwise agreed. The authority is linked to an interest in which the agent obtains ownership of all or part of the Agency`s object. To support a claim of right of power associated with an interest, either a legal title or a title of equity law is sufficient. A power related to an interest will outlive the agent`s personal representative after the agent`s death. 1. If the intermediary partially exercises its power, the contracting authority may revoke the Agency only for any future action. Article 7:437 DCC sets the notice period to be respected. In the event of incorrect notice, the client may be awarded compensation.

The notice period depends on whether or not there is a contractual termination regime in the contract. In the event that the cantonal court is involved, the court will terminate the contract without notice, but if the contract is terminated at the end of Article 6:265 of the DBA, a specific procedure must be followed with great care for the termination to be effective. Carefully consider the provisions of an agency contract before entering into it and apply the same due diligence when terminating agency contracts. Failure to follow good practices can lead to significant liability. On the other hand, if the parties have not agreed on a reasonable period of time to terminate the contract, the contract is deemed to be terminated after a reasonable period of time. “What constitutes a reasonable period of time during which the Authority is maintained shall be determined by the nature of the expressly approved act, the formality of the authorisation, the likelihood of changes in the purposes of the procuring entity and other factors.”;. .