An agency relationship can be automatically terminated by which of the following?

An agency relationship can indeed be automatically terminated by the lapse of time or the performance of the specified task. This is a fundamental principle in agency law. When an agency is created, it is typically done for a specific duration or until a particular task is completed. Once that time period expires or the task has been fulfilled, the agency relationship automatically concludes without the need for additional actions by either party.

This automatic termination serves various practical purposes, such as ensuring clarity in business operations and avoiding misunderstandings between the principal and the agent. It's integral to maintaining the integrity of contractual arrangements, as it defines the boundaries of an agent's authority and the principal's obligations.

Other options may relate to changes within the context of an agency but do not necessarily result in the automatic termination of the agency relationship. For example, changes in ownership of the agency or a change in contact information do not inherently disrupt the established agency relationship unless explicitly stated in the agency agreement. Similarly, negotiating new terms may modify the relationship but does not terminate it. Understanding these nuances is essential in the context of agency law.