Maria is a Colorado employing broker who has been representing a buyer under a written buyer agency agreement. The agreement has not yet reached its expiration date. Which of the following would NOT automatically terminate the buyer agency agreement by operation of law?
Correct Answer
C) The buyer orally instructs Maria to stop searching for properties.
An oral instruction from the buyer to stop searching for properties does NOT automatically terminate the buyer agency agreement by operation of law. A written buyer agency agreement in Colorado is a binding contract, and unilateral oral instructions alone do not legally terminate a written contractual agency relationship. Termination of a written agency agreement generally requires a written mutual release or another legally recognized termination event. The buyer may have potential liability for breach of the agreement if they simply give oral instructions to stop without a proper written termination.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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