When can an agency be terminated?

When can an agency be terminated?

• A. By the agent's request
• B. By completion, expiration, mutual agreement, or breach
• C. By notification to the client
• D. By court order

Answer: (B)

An agency can be terminated through several specific circumstances, which include completion of the task for which the agency was created, expiration of the agency agreement, mutual agreement between the parties involved, or breach of the contract. Completion refers to the successful fulfillment of the agency's purpose, such as selling a property. Expiration occurs when the time period defined in the agency agreement comes to an end. Mutual agreement means both the principal and the agent agree to end the relationship, which can happen for various reasons, including a change in circumstances or objectives. Breach involves one party failing to adhere to the terms of the agreement, which can lead to termination to protect the interests of the remaining party. These factors embody the standard scenarios in which an agency relationship can lawfully conclude, ensuring clarity and order in real estate transactions. Understanding these principles is crucial for navigating the complexities of agency relationships in real estate practice effectively.

An agency can be terminated through several specific circumstances, which include completion of the task for which the agency was created, expiration of the agency agreement, mutual agreement between the parties involved, or breach of the contract.

Completion refers to the successful fulfillment of the agency's purpose, such as selling a property. Expiration occurs when the time period defined in the agency agreement comes to an end. Mutual agreement means both the principal and the agent agree to end the relationship, which can happen for various reasons, including a change in circumstances or objectives. Breach involves one party failing to adhere to the terms of the agreement, which can lead to termination to protect the interests of the remaining party.

These factors embody the standard scenarios in which an agency relationship can lawfully conclude, ensuring clarity and order in real estate transactions. Understanding these principles is crucial for navigating the complexities of agency relationships in real estate practice effectively.