An exclusive agency contract is a type of agreement that ________.

Question

Quizplus · Accepted Answer

An exclusive agency contract is a type of agreement that grants an agent the exclusive right to represent a principal in a particular area or with regards to a particular product or service. However, unlike an exclusive agreement, the principal retains the right to sell the product or service themselves. In the event that the principal breaches the agreement, the agent may be entitled to recover monetary damages plus court costs and attorney's fees. Therefore, option B is the correct answer. Option A is not accurate because the contract does not necessarily restrict the agent from taking up other jobs, but only restricts them from representing other principals for the same product or service covered in the contract. Option C is not accurate because punitive damages are typically only awarded in cases of intentional wrongdoing, not breach of contract. Option D is also not accurate because the contract may or may not grant the agent the authority to sign legal documents on behalf of the principal.

An Exclusive Agency Contract Is a Type of Agreement That