Which of the following is NOT a way to terminate an agency?

The answer is based on the understanding of how agency relationships can be terminated in real estate practice. An agency relationship is formed when a principal and an agent enter into a mutual agreement, outlining the agent's role in representing the principal's interests.

Termination of an agency can occur through various means, such as the completion of the contract, where the objectives of the agency have been fulfilled. Destruction of the property also typically leads to the termination of the agency, as the subject of the agency is no longer viable. Mutual agreement is a common way to end an agency relationship, where both parties consent to dissolve the relationship.

However, a unilateral decision by the principal does not necessarily terminate the agency. While a principal may wish to end the relationship, they must typically adhere to any terms set forth in the agency agreement. Without proper justification, such as breach of contract or mutual consent, the agent may retain rights under the agreement. This emphasizes the importance of the agreement's terms in establishing how and when an agency can be terminated. Therefore, a unilateral decision by the principal is not inherently a valid method to terminate an agency without considering those terms.