EXTINGUISHMENT

1. REVOCATION by principal
- May be done at will because of the fiduciary character of the agency
- This power to revoke is plenary in nature and may revoke at anytime
- This ca be done even though there is a period in the contract of agency but may be liable for
the damages suffered by the agent
- If the principal does this in bad faith and stops agent from receiving the commission then the
agent can recover the full commission that is owed to him
- Even if the agent advances payment even of he is northbound to the agency may still be
revoked (He may recover) what he has advanced.
- EXPRESS OR IMPLIED
o EXPRESS: When the revocation is given to the agent that the power has been
terminated. This does not bind 3rd parties if the do not have notice of this revocation
o IMPLIED
 This can be done when the principal takes over the transaction himself
 When a new GPA or SPA is given to another revokes the power of the first
agent.
 BUT: IF first agent still ges into contract after the revocation then it is
merely unenforceable and not void. It is void as to the principal but
may be ratify.
 Also when an agent is subsequently another SPA gpa then the first ag3ency
is deemed extinguished
- EXCEPT: AGENCIES COUPLED WITH INTEREST cannot be really revoked at will
o Breach of confidence
o Bilateral Contract depends upon it
o Or if the contract so stipulates.
o When it is a means to fulfill the obligation
o If he sets up BUSINESS AND GETS PEOPLE for the business for the principal this
would mean that this agency is deemed irrevocable.
2. Withdrawal by agent
- Not as plenary than that of the principal power to revoke.
- Not a matter of right of the agent
- Ex. Agent does not want to serve anymore b/c whatever reason
o This is not valid and cannot withdraw LOYALTY, DILIGENCE TRUST still applies.
o There is no specific performance in obligations to do but he agent he may be liable
for damages
o Even when he withdraws formally the duty of diligence is still in play and still obliged
to take care of the things of the principal until principal finds another agent to fulfill
this purpose.
3. Death+ CI+ I+ Insanity of both the agent or the principal
- IPSO JURE EXTINGUSHES THE AGENCY
- When the death of the agent happens: (Heirs must take over the contract of agency)
- Q: Principal appoints 12 yr old boy to sell house and signs the deed of sale and must give
money to the boy 20m and the boy lost the money.
 A: Agent was not of legal age and had not capacity to contract and does not bind the
principal, Buyer must pay again. The3 contract is not voidable b/c the boy gives the consent
of the principal and not of the boy. VALID. 3rd person is still bound to the contract cannot
give the defense of minority.
- Sub Agent is considered agent of the principal.
- Q: if the agent appoints sub agent if D+CI+IN+INS happens to appointing agent does it
extinguish the sub agent?
A: The subagent is has fiduciary relationship with the principal. NO. sub agent stays as an
agent of the principal. EXCEPT: If there is a prohibition to appoint subagent then there is
nothing to revoke.
4. Dissolution fulfillment of the purpose
5. EXPIRATION