Which of the following can lead to the termination of an agency relationship?

The termination of an agency relationship can occur under various circumstances, and the correct answer identifies key reasons that are both intentional and formal. When the goals of the agency are met, all parties may reach a mutual agreement to dissolve the relationship, signifying a natural conclusion to the agreement. Additionally, the agency may terminate upon reaching the predetermined expiration date set within the contract. This mutual agreement emphasizes the collaborative nature of business relationships and highlights the principle that both the principal and agent can agree to end the agency amicably when objectives are fulfilled.

While other options address potential conflicts or issues within the agency, they do not represent definitive reasons for termination. For instance, failure of the agent to communicate might lead to conflict but does not on its own cause termination unless it leads to significant breaches of duty. Disagreements over commission rates could cause friction but might be resolved without ending the agency. Changes in market conditions can impact how an agency operates but do not inherently terminate the relationship unless specified by terms in the agreement. Thus, the correct answer reflects clear and established methods for terminating an agency relationship, which is essential knowledge for managing agency dynamics effectively.