Two brokers claim they should be paid, and the dispute turns on which broker's efforts directly started the chain of events that led to the closing. What principle resolves that question?
Correct Answer
B) Procuring cause
Procuring cause is correct because the facts match the broker whose efforts set in motion an uninterrupted chain of events leading to the completed transaction. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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