An Ohio seller signs an exclusive right-to-sell listing agreement with Broker Adams for 6 months. After 3 months, the seller terminates the listing without cause. Broker Adams incurs $2,000 in marketing expenses. Under Ohio law, what may Broker Adams be entitled to?
Correct Answer
C) Reimbursement of marketing expenses and potentially damages for early termination as provided in the listing agreement
Under Ohio contract law, a listing agreement is a binding contract. If the seller terminates without cause before the listing period expires, the broker may be entitled to reimbursement of expenses and damages as specified in the listing agreement. The specific terms of the listing agreement govern the broker's remedies.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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