Lesson: Termination of an Agency Relationship

In this lesson, Nick Palazzolo, CPA, dives deep into the complexities of terminating an agency relationship, providing clarity on when and how such a relationship can legally come to an end. He draws the distinction between the power to terminate and the right to terminate, noting that while both principal and agent can end the relationship, they must abide by the agency agreement and the law to avoid potential legal repercussions such as a breach of contract. Through various scenarios and examples, Nick illustrates the principles at stake, including the unique situation of an agency coupled with an interest where the agent holds a financial stake in the subject of the agency. Furthermore, Nick examines how the agency's power can serve as security for the agent and the implications thereof. Wrapping up with a practice exam question, he cleverly dissects the nuances of apparent authority versus express authority, priming viewers to tackle similar challenges they might face on the CPA exam.