Morgan,an agent,was instructed to sell Drew's property at a specified "firm" price of $450,000.A month later,the value of the property decreased substantially to $75,000 because of zoning changes.What is the status of the agency relationship?

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The agency relationship is most likely terminated because of impossibility. The property value has decreased substantially, making it impossible for Morgan to sell the property at the specified price of $450,000. This would result in frustration of purpose and termination of the agency relationship unless Drew had given Morgan a durable power of attorney that allows the agent to act on behalf of the principal even in the face of impossibility. Option B is incorrect because a durable power of attorney would not prevent the termination of the agency relationship due to impossibility. Option C is incorrect because an agency coupled with an interest is created when the agent has an interest in the subject matter of the agency, which is not the case in this scenario. Option D is incorrect because there is no provision for the agent to compensate the principal in this situation.

Morgan,an Agent,was Instructed to Sell Drew's Property at a Specified