Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing. ...

No. Morgan hired Barnes to manage a new subdivision. Barnes has been authorized to transact all affairs in connection with the subdivision. As such, Barnes is a general agent. In most cases, either party to an agency relationship has the power to terminate that relationship at any time. Therefore, Morgan has the power to terminate the agency. However, there is a possibility of liability for damages if the termination was not accomplished in a lawful manner. Given the fact that Barnes has been engaged in misconduct, the discharge of Barnes will be without liability. Care should be taken to ensure that third parties are given notice of the agency termination.