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Agency PracticeAgency AgreementsWAHARD

In Western Australia, if an agency agreement is terminated early by the principal without breach by the agent, what commission entitlement does the agent typically have?

Correct Answer

D) No commission, though agreed marketing expenses already incurred may be recoverable

Under WA legislation and common law principles, when an agency agreement is terminated without the agent's breach and no sale occurs, the agent typically cannot claim commission but may be entitled to reimbursement of reasonable marketing expenses incurred. Commission is generally only payable upon successful completion of the agency's purpose.

Answer Options
A
Full commission calculated on the listed price, because the principal ended the agreement early
B
Half the agreed commission as a break fee, which WA law implies into every exclusive agreement
C
A pro-rata share of commission reflecting the portion of the agency period already served
D
No commission, though agreed marketing expenses already incurred may be recoverable

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Related Topics & Key Terms

Key Terms:

commission entitlementearly terminationmarketing expensescontingent considerationagency agreement
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