What typically happens to an agent's authority when the agency ends?

When an agency relationship ends, the agent's authority typically terminates automatically and immediately. This principle is based on the understanding that the agent's authority is derived from their relationship with the principal, and once that relationship is severed—whether through mutual agreement, completion of the task, or other means—the agent no longer has the power to act on behalf of the principal.

Consider a scenario where a principal inspects their agent's decisions and finds that the agency's objectives have been fulfilled or the principal wishes to pursue a different course of action. In such cases, the authority granted to the agent ceases without needing further action.

While there may be situations that require formal notification to third parties about the termination for the sake of clarity or to prevent ongoing reliance on the agent, from a legal standpoint, the authority itself ends immediately upon termination of the agency relationship. Thus, in understanding agency dynamics, it is crucial to recognize that the cessation of authority is inherent in the conclusion of the relationship.