The court held that yes, the real estate listing agreement was terminated when t

Question

The court held that yes, the real estate listing agreement was terminated when the Hagues sent the termination letter to Hilgendorf, the real estate agent, prior to the expiration of the listing agreement. Since an agency is a consensual relationship, a principal has the power to terminate an agency although the contract is for a period that has not yet expired. The agent’s authority to bind the principal ceases. Thus, the Hagues had the power to terminate the exclusive listing agreement with Hilgendorf. Using a minimum of three sentences a) Do you agree with the court's ruling? b) Why or why not?

Explanation / Answer

No, I do not agree with the court's ruling. An agency is a consensual relationship and the principal has the power to terminate agency not coupled with interest even in case of unexpired term. Encountering financial difficulties is not a legal reason and the agency can only be terminated by a legal reason. In this case, Hilgendorf can recover damages from Hagues for breach of the listing agreement.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.