Explanation of Article 90
This article addresses the statement of "termination of agency," which is: the expiration of the agent's authority to contract in the name of the principal. The article stipulates that the termination of the agency occurs in two cases:
-
First: "Expiration of the agency period," which means: the period specified by the principal for the agency ends. In this case, the agency is terminated, and the agent is no longer allowed to contract in the name of the principal.
-
Second: "Death of one of the parties," which means: the principal or the agent passes away. In this case, the agency is terminated, and the agent is no longer allowed to contract in the name of the principal, nor are the heirs of the principal or the agent allowed to contract in the name of the principal.
It should be noted that this ruling applies to all types of agency, whether it is a general agency or a special agency.
The termination of the agency results in the "expiration of the agent's authority," so he is no longer allowed to contract in the name of the principal. If he does contract, his contract is "void" and does not produce any legal effect.
This article is considered one of the most important articles related to the termination of agency, as it protects the rights of the principal and provides him with the opportunity to terminate the agency if he no longer needs it.
Related To
Article 90
If an agent, within the limits of his agency, concludes a contract in the principal’s name, the rights and obligations arising from such contract shall accrue to the principal.