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.
Why This Is the Correct Answer
Commission is payable only when the event it depends on, usually a sale, occurs; an agent whose agreement is ended early can still recover expenses the seller agreed to pay in the signed appointment.
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