An agency may be terminated for any of the following reasons:
- Death or incapacity of either party
- Destruction or condemnation of the property
- Expiration of the terms of the agency
- Mutual agreement by all parties to the contract
- Breach by one of the parties, in which case the breaching party might be liable for damages
- By operation of law, as in bankruptcy of the principal (bankruptcy terminates the agency contract, and title to the property transfers to a court-appointed receiver)
- Completion, performance, or fulfillment of the purpose for which the agency was created
In Illinois, a definite termination date must be included in a brokerage agreement.
Automatic extension clauses are illegal under Illinois law.
