In agency law, what does the term "renunciation" refer to?

Renunciation in agency law specifically refers to the act of an agent voluntarily withdrawing from the agency relationship. This means that the agent has decided to terminate their role and responsibilities that were initially accepted when the agency was formed. It is essential for the agent to properly communicate their intent to renounce the agency to the principal, as this withdrawal can have implications for both parties involved.

When an agent renounces their position, it releases the agent from the obligations they owe to the principal, although it may also have consequences if the renunciation occurs before the completion of the agency purpose or contracts that were established. Understanding this concept is fundamental in distinguishing it from other aspects of agency dynamics, such as the continuation of an agency relationship or compliance with the principal's instructions.