An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on:

An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on termination of Agency.

The parties can terminate the agency through mutual agreement. An agency relationship often needs the mutual assent of the parties and both the parties is entitled to the power to withdraw their assent.

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Termination.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Hence, it is an important criteria that parties to a contract should be in agreement before proceeding to execute the terms in the contract.

In a nutshell, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

Therefore, an agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on termination.