Which of the following does NOT terminate an agency relationship?

An implied agency is a type of agency relationship that arises from the conduct of the parties involved rather than from a formal agreement. In an implied agency, actions and behaviors suggest that one party is acting on behalf of another, even without a written or explicit contract. As a result, an implied agency does not automatically terminate an agency relationship; it continues as long as the underlying circumstances allow that relationship to remain intact, unless explicitly dissolved by mutual consent or other definitive actions by either party.

In contrast, the other options listed do lead to the termination of an agency relationship. For instance, bankruptcy can render a principal or agent unable to fulfill their obligations, leading to the dissolution of the agency. A material change in circumstances may alter the foundational agreement of the agency, necessitating its termination to reflect the new situation. Lastly, the unilateral discharge of the agent by the principal is a direct action taken to terminate the agency relationship.

Thus, considering these dynamics, an implied agency remains active unless specific actions are taken to dissolve it, making it the correct answer to the question regarding what does not terminate an agency relationship.