Agency means a relationship between one person and another, where the first

person brings the second mentioned person in a legal relationship with others.
There are different modes of the creation of agency and termination of agency.

Termination of Agency

An agent is a person employed to do any act or enter into a contractual

relationship with others (third parties) on behalf of his principal. An agent acts as
a connecting link between his principal and third parties.

While representing his principal, an agent acts in the same capacity as of his

principal. An agent is authorized by his principal to act on his behalf. An agent
binds his principal legally in business transactions with third parties due to their
agency relationship.

According to Section 201 of the Indian Contract Act, 1872, Termination of

agency takes place in the following circumstances: –

1. By revocation of authority by the principal.

2. By renunciation of his authority by the agent.
3. On the performance of the contract of agency.
4. On the death of either principal or agent.
5. By insanity of either principal or agent.
6. With the expiration of time period fixed for the contract of agency.
7. By an agreement made between the principal and his agent.
8. With the insolvency of principal or agent (in few cases).
9. When the principal and his agent is an incorporated company, by
its dissolution
10. With the destruction of the subject matter. (section 56)

When an agency cannot be terminated or put an end to, it is said to

be an irrevocable agency in following cases:
  

1.              Where the agency is coupled with interest.  Where an agent

has an interest in the subject matter of the contract entered into by
him with a third party, his authority is coupled with the interest. He
has, in such case, the right to sue or be sued, but only to the extent
of his interest. (sec 202)
2.              Where the agent has incurred a personal liability.  When an
agent incurs personal liability, the agency becomes irrevocable. The
principal cannot, in such case, withdraw leaving the agent exposed to
the risk or liability he has already incurred.
3.              Where the agent has partly exercised the authority:  The
principal cannot revoke the authority given to his agent after the
authority has been partly exercised; so far as regards such acts and
obligations as arise from the acts already done in agency.(Sec. 204)