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Giselle,
Yes, you need to cancel your contract first. I'd recommend doing that immediately. Then start seaching for another agent. Some good resources for that: Everything You Wanted to Know About Agents; Writer Beware (especially see "The Safest Way to Search for an Agent); Preditors and Editors; and the AAR. The Index sticky'd to the top of the BABC page is also very useful.
Also, while you're querying other agents, be writing your next book. Good luck.
Yes, you need to cancel your contract first. I'd recommend doing that immediately. Then start seaching for another agent. Some good resources for that: Everything You Wanted to Know About Agents; Writer Beware (especially see "The Safest Way to Search for an Agent); Preditors and Editors; and the AAR. The Index sticky'd to the top of the BABC page is also very useful.
Also, while you're querying other agents, be writing your next book. Good luck.