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Jamie Authorizes Amy to Sell His House,but Does Not Clarify

Question 22

Multiple Choice

Jamie authorizes Amy to sell his house,but does not clarify about the compensation payable to Amy.What amount should be paid to Amy when she sells Jamie's house?


A) Nothing,since agency relationships are assumed to be gratuitous unless an agreement specifies compensation
B) An amount to be determined by arbitration
C) A fair value for the services performed
D) Ten percent of the sales price

Correct Answer:

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