A listed cabin is destroyed by fire before a sale can occur. The listing broker was hired only to market that cabin. What event may terminate the agency?
Correct Answer
A) Termination by destruction of the subject property
Termination by destruction of the subject property is correct because the facts match the ending of an agency relationship when the property that is the subject of the agency is destroyed or materially changed so the agency purpose cannot be fulfilled. That is the best description of the relationship, right, or legal concept tested here.
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An individual principal dies before the listed property is sold, and the brokerage had authority only from that principal. What event generally ends the agency?
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Noah Cook signs a written buyer-representation agreement appointing Daniel Chen to locate and negotiate the purchase of a home. How was this agency relationship created?