What action results in the termination of an agency relationship initiated by the principal?

The action that results in the termination of an agency relationship initiated by the principal is revocation. When the principal decides to terminate the authority given to the agent, they effectively revoke the agent's power to act on their behalf. This can occur for various reasons, such as dissatisfaction with the agent's performance, a change in circumstance, or the completion of the task for which the agency was created.

Revocation is a formal process where the principal communicates their decision to end the agency relationship, which can be done through notice or other means of communication. This act is within the principal's rights as they have the authority to control the agency relationship. The agent must then cease acting on behalf of the principal and is no longer authorized to bind the principal in any agreements or contracts.

Other options like cancellation, abandonment, or suspension do not specifically capture the formal action taken by the principal to terminate the agency relationship. Cancellation typically refers to ending a specific contract or agreement rather than the agency itself, abandonment relates more to the agent's failure to perform duties rather than the principal’s action, and suspension might indicate a temporary halt of the agency rather than complete termination. Therefore, revocation is the correct term that aligns with the principal's right to terminate their agency relationship actively