Which statement describes termination by the fulfillment of purpose?

• A. Death of either party
• B. Destruction of the property
• C. Fulfillment of the purpose for which the agency was created
• D. Renunciation by the agent

Answer: (C)

Terminating by fulfillment of purpose means the agency ends when the task the principal hired the agent to complete is finished. When the objective is achieved, there’s no remaining duty for the agent to perform and the authority to act on behalf of the principal ends naturally. For example, if a broker is hired to sell a house, the agency ends once the house is sold and the closing occurs because that completes the stated purpose. Other ways an agency can end happen for different reasons, such as the death of a party who must perform, damage to the subject matter that makes the objective impossible, or the agent choosing to quit. But those scenarios aren’t about finishing the intended goal; they’re about circumstances that prevent or explicitly terminate the ongoing relationship. The essence here is that the relationship stops because the original goal has been achieved.