What occurs when both the agent and the client agree to terminate the agency relationship?

The correct answer is mutual rescission because it specifically refers to the voluntary agreement of both parties—in this case, the agent and the client—to end the agency relationship. In legal terms, mutual rescission means that both parties consent to terminate the contract and effectively cancel any obligations that were previously established between them. This reflects a collaborative and consensual decision to cease the agency arrangement, ensuring that neither party is pursuing further actions or claims against the other related to their previous agreement.

Other terms, while they may seem relevant, do not fully encapsulate the essence of the cooperative termination process. Termination could imply a unilateral decision by one of the parties, which doesn't reflect the agreement aspect between the agent and client. Conclusion of services suggests that services have simply wrapped up, without indicating the formal end of the contractual relationship. Release of agreement may imply that one party is letting the other go, but it doesn't clearly express that both parties have agreed to terminate the relationship together. Thus, mutual rescission is the most accurate term to describe this scenario.