Broker Rachel in Rhode Island has a signed listing agreement with seller Paul. Before closing, Paul dies. The estate's administrator refuses to pay Rachel's commission and attempts to cancel the listing. Under Rhode Island law, which outcome is most likely?
Correct Answer
B) Rachel may enforce her commission claim against Paul's estate if she had already procured a ready, willing, and able buyer before Paul's death
In Rhode Island, the death of a principal (seller) generally terminates an agency relationship, including a listing agreement. However, if the broker had already earned the commission by procuring a ready, willing, and able buyer before the seller's death, the commission obligation survives as a debt of the estate. Rachel can enforce her earned commission claim against Paul's estate through the probate process.
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Related Topics & Key Terms
Key Terms:
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