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|b Research Title (Cases and Causes of Agency (Wakala) Termination) This research has concluded that agency (Wakala) contract is a non-binding contract; meaning that both parties to the contract, i.e. principal and agent, shall have the right to terminate the contract at any time. However, termination shall not be effective until and unless agent has been notified thereof. In this case, repayment by a principal’s debtor to the agent shall relieve such debtor from his obligation towards the principal. However, scholars (faqihs) are on disagreement regarding whether repayment, while the agent is aware of contract termination, shall discharge the debtor of his obligation towards the principal or not. If a person appoints an agent to divorce his wife on his behalf, he may end such an agency, whether explicitly, i.e. by clear statement, or implicitly, by taking actions serving this end. At the same time, a principal may terminate agency contract in dispute even after commencement of dispute procedures. Moreover, if a person acts as an agent on behalf of a defendant in a dispute, upon a request by the claimant, due to the absence of the defendant, agency contract may be terminated by the principal as it is the case with any other agencies. If a principal appoints an agent to receive an amount of money owed to him by a third party, such an agency shall be terminated if such an amount, or debt, has been legally transferred to another person. However, if the agent is appointed to recover a right, not a debt itself, agency shall not be terminated by the transfer of such a debt, and the agent shall have the right to recourse to the person to whom the debt is transferred for repayment. Also, in case an agent is appointed on behalf of a minor, agency shall be automatically terminated once the minor reaches legal age unless the principal, i.e. the minor who has reached legal age, chooses to maintain agency relationship, which in this case shall be reestablished by a new agreement. If, in a partnership, one party appoints the other as his agent, agency relationship shall not be automatically terminated upon termination of partnership. If, in a retribution process, an agent, unaware of his principal’s waiver of his right, has enforced retribution procedures, neither he nor his principal shall be deemed in a violation of any kind. According to the most preponderant fiqhi opinion, an agency contract shall be automatically ended upon the death of the mortgagor as a principal, but shall not be ended this way upon the death of mortgagee as a principal.
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