Question

An Agency Agreement would terminate under which of the following conditions? Select one:

1) When a Purchase Agreement is signed
2) When the property is hit by lightning
3) When the Laws of Agency change
4) After an Act of Sale

Answer 1

An Agency Agreement terminates when a Purchase Agreement is signed, when the Laws of Agency change, or after an Act of Sale.

Step-by-step explanation:

An Agency Agreement terminates under certain conditions.

1. When a Purchase Agreement is signed: If a purchase agreement is made between the parties involved, it can result in the termination of the agency agreement as the purpose of the agency would be fulfilled with the signing of the purchase agreement.
2. When the Laws of Agency change: If there are significant changes in the laws governing agency agreements, it may render the current agreement invalid and terminate it.
3. After an Act of Sale: If the property in question is sold or transferred, the agency agreement would typically be terminated.