What event typically terminates an agency agreement?

The termination of an agency agreement fundamentally occurs when the principal either dies or becomes incapacitated. This is primarily because the relationship between a principal and an agent hinges upon the authority granted by the principal. When the principal dies or is rendered incapable of making decisions, the agent's authorization to act on behalf of the principal ceases as well. This principle is rooted in the idea that the agent must have a competent principal to represent.

In contrast, a change of address of the agent generally does not impact the validity of the agency agreement, as there are typically no repercussions for changing corresponding details unless explicitly outlined in the agreement. Additionally, disagreements on terms of service may lead to conflicts or renegotiations but do not automatically end the agency relationship unless the parties decide to terminate it. Lastly, while completion of the agreement can signify the end of the relationship, it is not an event that inherently terminates the agency agreement as it is typically expected to conclude when its specific purposes are fulfilled. Thus, the death or incapacity of the principal is the most definitive event that nullifies the agency agreement.