What you have been told by the agency with regard to the payment of rent until the end of the term is absolutely correct however if there is another tenant in the property, your daughter is only liable for rental until the new tenant takes over.
The landlord, either direct or via the agent, is under a duty to mitigate his loss and that means that he must try to get another tenant within a reasonable period of time. If the agent has failed to do that because they have turned down or simply ignored potential tenants introduced by your daughter, then she has a defence to any claim brought by the landlord on failure to mitigate loss.
Your daughter cannot actually cancel the contract, it only gets cancelled when there is a new tenant.
If the agent feels that she is going to be liable for the rent for the next 12 months or even the protracted period while they mess about getting a new tenant, and your daughter doesn’t pay, they are going to have to take her to court and she will have to defend it on the basis that she had a tenant and they refused to take it on in favour of their own tenant who either signed up much later or didn’t sign up at all.
Neither the agent nor the landlord are under a duty to explain the agreement or the ramifications of entering into it.
The thing with regard to the deposit is to wait until there is a new tenant and then ask for it to be returned putting the claim through the tenants deposit dispute process if necessary.
Can I clarify anything for you?
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