Which of the following situations can lead to the Termination of Agency under operation of Law?

The termination of agency under operation of law occurs when certain fundamental changes or events affect the relationship between the agent and the principal. One of the most significant reasons for this termination is the death, mental incapacity, or bankruptcy of either the agent or the principal.

When an agent dies, becomes mentally incapacitated, or declares bankruptcy, the legal authority to act on behalf of the principal is extinguished. This is because the agency relationship relies heavily on the ability of the agent to make decisions and represent the principal's interests. In these situations, the agent can no longer fulfill their role, thus automatically terminating the agency without any need for further action or agreement by the principal.

This fundamental aspect of agency law ensures that there are clear boundaries regarding the conditions under which an agency can be legally terminated, promoting clarity and stability in real estate transactions and other legal representations. Other factors, like changing an agent's address, successfully completing a transaction, or failing to communicate, do not have the same legal implications for the termination of agency.