Modes of Extinguishment of Agency

1. Expiration of the period for which the agency was constituted

● When the agency was created for a specific period of time, and the period has expired, it is automatically terminated.

● When an agency is created for a fixed period, the expiration of such period ends the agency, even though the purpose for which the agency was created has not been accomplished.

● If there is a period stipulated in the agency contract, the principal may still revoke the agent’s authority at will; but principal will be liable for damages. (Dialosa v CA)

2. Death, civil interdiction, insanity, insolvency

3. Withdrawal of the Agent

The agent, even if he should withdraw from the agency for a valid reason, must continue to act until the principal has had reasonable opportunity to take the necessary steps to meet the situation. (Art. 1929, CC). This is to prevent damage or prejudice to the principal.

4. Accomplishment of the object or purpose of the agency

5. Revocation

6. Dissolution of the firm or corporation which entrusted or accepted the agency

Dissolution of a corporation extinguishes its juridical existence.

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Agency