Which term describes the cessation of a representation relationship due to mutual agreement?

Study for the RECA Fundamentals Exam. Access flashcards and multiple choice questions with hints and explanations to prepare for your exam. Enhance your knowledge and readiness for success!

The correct term for the cessation of a representation relationship due to mutual agreement is "revocation." In the context of representation relationships, revocation refers to the process through which one party withdraws consent to represent or act on behalf of another, effectively ending the relationship. This can occur when both parties agree that the representation should conclude, marking a mutual understanding that the relationship is no longer in effect.

In contrast, other terms like termination by operation of law typically refer to automatic processes that dissolve relationships based on external conditions or legal statutes, rather than mutual consent. Completion or performance signifies the successful fulfillment of obligations, thus naturally ending the relationship, but does not necessarily involve agreement to terminate. Expiry indicates that a relationship has come to an end due to the passage of time or the occurrence of a specific event, rather than a mutually agreed decision to cease the relationship.

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