What condition must be met for agency termination through mutual agreement?

In agency relationships, mutual agreement means that both the principal and the agent have come to a consensus to end their working relationship. It emphasizes the cooperative nature of the decision; both parties must share the intent to dissolve the agency relationship. This ensures that the termination is legally effective and recognized by both sides.

Mutual agreement also provides clarity and prevents potential disputes about the termination of the agency, as both parties have formally acknowledged and consented to the ending of their agreement. This alignment is crucial in maintaining professionalism and trust in real estate transactions.

The other conditions mentioned in the choices do not accurately reflect the necessary requirements for a mutual termination of an agency relationship; they involve criteria that do not pertain to mutual consent or imply obligations that one party must fulfill without the agreement of the other.