Explanation of Article 502
The article outlines a number of reasons that terminate the agency contract, which are:
The first reason: The agent completes the work assigned to them. For example, if the work assigned to the agent is to litigate a specific case, the agency ends with the conclusion of the case, whether the agent succeeds in what they were assigned or not.
The second reason: The expiration of the specified term of the agency. For instance, if a person appoints another to manage their property for a year, the agency ends with the end of the year. If the agent continues to work after the term has expired with the knowledge of the principal and without their objection, this is considered an implicit renewal of the agency.
The third reason: The death of the agent or the principal, as the agency contract is based on the consideration of the personalities of the principal and the agent, whether the agency is for a fee or not. The agency contract ends with the death of either party. However, if the principal dies, the agent must bring the works they started to a state where they are not exposed to damage, and the agency remains in effect concerning the works performed for this purpose. The termination of the agency due to the death of the principal or the agent is not a matter of public policy; it is permissible to agree otherwise, and it becomes an obligation within the limits of the estate.
The fourth reason: If the agent or the principal loses their legal capacity; if the principal loses their legal capacity, the agency contract ends because the effect of the transaction conducted by the agent cannot be attributed to them due to the loss of capacity. If the agent loses their legal capacity, the agency contract ends because the agent cannot directly perform the transaction for which the principal appointed them.
Related To
Article 502
A power of attorney contract shall terminate upon completion of the work subject of the power of attorney, expiration of the term of the power of attorney, or the death or loss of competence of the principal or the agent.