The correct answer is Destruction of the subject matter of the contract of agency. Agency Contract:An agency contract is a legal relationship, where one person appoints another to transact on his behalf.The contract person who appoints another person to look after his transactions is called the original person.Whereas the person who sees any transaction of the original person is the agent. Important Points The agency is contractual.There is a special contract under the Indian Contract Act 1872.According to this contract, if the subject matter of the contract of the agency is lost, it cannot be a valid agency.It is absolutely necessary to have the subject matter in the agency for a contract.