Accomplishment of object or purpose.

When the object or purpose of the agency is accomplished and nothing else remains to be done, there
would be no sense in continuing the relationship beyond that point.

An agency relationship between the parties may also be terminated by the non-accomplishment of the
object or purpose within a reasonable time.

Expiration of term

1) Term specified. Where an agency, by the terms of the original agreement, is created for a fixed
period or is to end at a certain time, the expiration of such period or the arrival of that time, obviously
results in the termination of the relationship,

2) Term not specified. If no time is specified, it terminates at the end of a reasonable period of time

Modes provided not exclusive.

1) Generally -loss of the thing and novation.

(2) War. During the existence of a state of war, a contract of agency is inoperative if the agent or the
principal is an enemy alien.

(3) Legal impossibility. An agency terminates if a change in the law makes the purpose of the agency
unlawful.

(4) Termination of agents authority.

5) Occurrence of a specified event. - resolutory condition

Loss or destruction of subject matter.

Exception

1. If it is possible to substitute other material for that which was destroyed without substantial detriment
to either party or if the destroyed subject matter was not in fact essential to the contract, the agency
may continue.

2. it may continue in existence as to other property not affected.

Liability of the Principal

-principal is liable for his wrongful termination act

Change of conditions.

1. value of the subject matter

2. changes in the general business climate

Exception:

1. If the original circumstances are restored within a reasonable period of time, the agents authority may
be revived.

2. Where the agent has reasonable doubts as to whether the principal would desire him to act, his
authority will not be terminated if he acts reasonably.

3. Where the principal and agent are in close daily contact, the agents authority to act will not terminate
upon a change of circumstances if the agent knows the principal is aware of the change and does not
give him new instructions.

Confidential information acquired by former agent in the course of his agency.

While the relation of principal and agent is confidential, not all knowledge acquired by the agent is of a
confidential nature.

first, whether the knowledge or information, the use of which the complainant seeks to enjoin, is
confidential; and second, whether, if it be confidential, in whole or in part, its use ought to be prevented

The real principle upon which the agent is restrained from making use of confidential information which
he has gained in the employment of the principal is that there is in the contract of service subsisting
between the principal and agent an implied contract on the part of the agent that he will not, after the
service is terminated, use information which he has gained while the service has been subsisting to the
detriment of his former employer

ART. 1920. The principal may revoke the agency at will, and compel the agent to return the document
evi- dencing the agency. Such revocation may be express or implied

An agency may be terminated by the subsequent acts of the parties. When done by the principal, it is
called revocation and when done by the agent, it is usually spoken of as withdrawal or renunciation.
1. Agency generally revocable at will by principal.

2. The mere fact that the agency is to be irrevocable will not make it so; and the principal may still
revoke the relationship at will.

Kinds of revocation

1. Implied

- when the principal directly manages the business entrusted to the agent.

- when the principal appoints a new agent for the same business or transaction

Notice of revocation.

1) To agent. As between the principal and the agent, express notice to the agent that the agency is
revoked is not always necessary. If the party to be notified actually knows, or has reason to know, facts
indicating that his authority has been terminated or is suspended, there is sufficient notice.

2) To third persons. In this connection, it has been held that actual notice must be brought home to
former customers, while notice by publication is sufficient as to other persons.

It is not always necessary that the notice of revocation be shown in a written oral communication from
the principal or agent. Whether a third person has received such notice depends upon the facts of the
particular case

Renunciation of agency by agent.

(1) Agency terminable at will. Just as the principal has the power to revoke the agency at will, so too,
the agent has the power to renounce the agency relationship, subject only to the contractual obligations
owing to the principal

2) Reason for the rule. Where the agent terminates the agency in violation of a contract, the principal
has no right to affirmative specific performance of the agency for the essence of the relationship is
consensual the willingness of the agent to act for the principal.

A statement in a contract that the authority cannot be ter- minated by either party for a specified time
adds nothing to the contract; it is effective only to create liability for breach thereof. The law will not
compel the parties to continue an agency if they do not want to do so. Agency deals with personal
services, and, therefore, specific performance is inappropriate.

3. Form of renunciation. It is not always necessary for the agent to renounce the agency expressly, as
for example, where he has conducted himself in a manner clearly incompatible with his duties as agent.

ART. 1921. If the agency has been entrusted for the purpose of contracting with specified persons, its re-
vocation shall not prejudice the latter if they were not given notice thereof. (1734)

ART. 1922. If the agent had general powers, revo- cation of the agency does not prejudice third persons
who acted in good faith and without knowledge of the revocation. Notice of the revocation in a
newspaper of general circulation is a sufficient warning to third per- sons.

ART. 1923. The appointment of a new agent for the same business or transaction revokes the previous
agency from the day on which notice thereof was given to the former agent, without prejudice to the
provisions of the two preceding articles

Revocation by appointment of new agent.

(1) Implied revocation of previous agency. There is implied revocation of the previous agency when
the principal appoints a new agent for the same business or transaction provided there is incompatibility.
But the revocation does not become effective as between the principal and the agent until it is in some
way communicated to the latter.

There is no implied revocation where the appointment of another agent is not incompatible with the
continuation of a like authority in the first agent, or the first agent is not given notice of the appointment
of the new agent.

2) Substitution of counsel of record. No substitution of counsel of record is allowed unless the

following essential requisites of a valid substitution of counsel concur:

(a) There must be a written request for substitution;

(b) It must be filed with the written consent of the client;

(c) It must be with the written consent of the attorney to be substituted; and
(d) In case, the consent of the attorney to be substituted cannot be obtained, there must be at least a
proof of notice, that the motion for substitution was served on him in the manner prescribed by the Rules
of Court.

ART. 1924. The agency is revoked if the principal directly manages the business entrusted to the agent,
dealing directly with third persons.

If the purpose of the principal in dealing directly with the purchaser and himself effecting the sale of the
principals property is to avoid payment of his agents commission, the implied revocation is deemed
made in bad faith and cannot be sanctioned without according to the agent the commission which is due
him

ART. 1925. When two or more principals have grant- ed a power of attorney for a common transaction,
any one of them may revoke the same without the consent of the others.

In a solidary obligation, the act of one is the act of all.

ART. 1926. A general power of attorney is revoked by a special one granted to another agent, as regards
the special matter involved in the latter.

In this article (like Art. 1923.), two agents are involved: one to whom a general power is previously
granted and the other, to whom a special power is given. It may, however, also apply where the special
power is subsequently granted to the same agent.

The general power is impliedly revoked as to matters covered by the special power. A special power
naturally prevails over a general power.

It is indispensable that notice of the revocation be communi- cated in some way to the agent.

ART. 1927. An agency cannot be revoked if a bilat- eral contract depends upon it, or if it is the means of
ful- filling an obligation already contracted, or if a partner is appointed manager of a partnership in the
contract of partnership and his removal from the management is unjustifiable.
Agency coupled with an interest.

The general rule is that the principal may revoke an agency at will. (Art. 1920.) The rationale for the rule
is that the essence of agency is the agents duty of obedience to the principal. This rule, however, has
exceptions and they are:

(1) when the agency is created not only for the interest of the principal but also for the interest of third
persons; and

(2) when the agency is created for the mutual interest of both the principal and the agent. (Art. 1930.)

Termination of the agency.

An agency coupled with an interest cannot be terminated by the sole will of the principal although it is so
revocable after the interest ceases.

1) Interest in the subject matter of power conferred. In order that an agency may be irrevocable
because coupled with an interest, it is essential that the interest of the agent shall be in the subject
matter of the power conferred and not merely an interest in the exercise of the power because it entitles
him to compensation therefor.

2) Sufficiency of interest. As to what constitutes a sufficient interest to take the holder out of the
agency relation, it is sometimes said it must be a present interest in the subject matter itself and that an
interest in the proceeds of the powers exercise as compensation is insufficient.

Terminology used by parties not controlling.

Whether an interest which will make an agency or power7 irrevocable exists in a particular case is to be
determined from the entire agreement between the parties and from the facts and circumstances.

ART. 1928. The agent may withdraw from the agen- cy by giving due notice to the principal. If the latter
should suffer any damage by reason of the withdraw- al, the agent must indemnify him therefor, unless
the agent should base his withdrawal upon the impossibil- ity of continuing the performance of the
agency with- out grave detriment to himself. (1736a)

Just as the principal may revoke generally the agency at will (Art. 1920.), the agent may likewise
renounce or withdraw from the agency at any time, without the consent of the principal, even in violation
of the latters contractual rights; subject to liability for breach of contract or for tort. This rule which
applies whether the agency is gratuitous or for compensation is based on the constitutional prohibition
against involuntary servitude.

Without just cause. The law imposes upon the agent the duty to give due notice to the principal and if
the withdrawal is without just cause, to indemnify the principal should the latter suffer damage by reason
of such withdrawal.

With just cause. If the agent withdraws from the agency for a valid reason (Art. 1929.) as when the
withdrawal is based on the impossibility of continuing with the agency without grave detriment to himself
(Art. 1928.), or is due to a fortuitous event (Art. 1174.), the agent cannot be held liable.

ART. 1929. 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.
(1737a)

Obligation of agent to continue to act after withdrawal.

The law reconciles the interests of the agent with those of the principal, and if it permits the withdrawal
of the agent, it is on the condition that no damage results to the principal, and if the agent desires to be
relieved of the obligation of making reparation when he withdraws for a just cause, he must continue to
act so that no injury may be caused to the principal.

ART. 1930. The agency shall remain in full force and effect even after the death of the principal, if it has
been constituted in the common interest of the latter and of the agent, or in the interest of a third person
who has accepted the stipulation in his favor.

When death of principal does not terminate agency.

(1) if the agency has been constituted in the common interest of the principal and the agent (see Art.
1927.); and

(2) if it has been constituted in the interest of a third person who has accepted the stipulation in his
favor.
ART. 1931. Anything done by the agent, without knowledge of the death of the principal or of any other
cause which extinguishes the agency, is valid and shall be fully effective with respect to third persons
who may have contracted with him in good faith. (1738)

ART. 1932. If the agent dies, his heirs must notify the principal thereof, and in the meantime adopt such
measures as the circumstances may demand in the interest of the latter. (1739)

Continuation by agents heirs of agency.

(1) General rule. An agency calls for personal services. Ordinarily, therefore, the agents duties cannot
be performed by his personal representatives, and in case of his death, the agency is generally thereby
terminated.

Exceptions

(a) The heirs duty to continue the agency after the death of the agent arises from what may be termed
as an agency by operation of law or a presumed or tacit agency.

b) Where the agency is one coupled with an interest in the subject matter of the agency (like the power
of sale in a mortgage), the death of the agent will not instantly end the relationship, and consequently,
his heirs or representatives may subsequently exercise the power conferred at least insofar as may be
necessary to protect the interests of the estate of the agen