In Victoria, if an agency agreement is terminated by the vendor before expiration without just cause, what rights does the agent typically retain regarding commission?
Correct Answer
C) Recovery of marketing costs and other amounts the sales authority provides for on termination.
An agent's rights when a vendor ends a sales authority early come from the authority itself and contract law, not from a statutory compensation scheme. Typically the agent can recover the marketing expenses the vendor authorised, and commission may be payable if the property later sells to a buyer the agent introduced, as the authority provides. Terminating without just cause in breach of the authority may also give the agent a claim for damages.
Why This Is the Correct Answer
The agent's entitlements on early termination depend on the terms of the sales authority. These usually include reimbursement of authorised marketing expenses and commission if the property later sells to a buyer the agent introduced. Wrongful termination can also give rise to a claim for damages for breach of contract.
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Previous Question
In South Australia, an exclusive agency agreement expires. Ten days later the vendor sells to a buyer the agent introduced during the agency. The agreement has the usual clause about sales after expiry. What is the likely outcome?
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In Victoria, under what circumstances can a real estate agent terminate an exclusive agency agreement before its expiry date?