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MsPrincipal and Mr

Question 71

Multiple Choice

Ms.Principal and Mr.Agent sign an agency contract under which Agent will sell Principal's house for a fee of $10,000.Assume that the contract is valid in all respects and that on the third day of the contract period,Ms.Principal tells Mr.Agent that she has changed her mind and doesn't want him to sell the house.The next day Mr.Agent goes to Ms.Principal with a ready,willing,and able buyer.Ms.Principal:


A) must sell to the buyer because the agency is still in existence
B) cannot sell to the buyer because the agency is no longer in existence
C) can recover damages from Mr. Agent because the agency had ended
D) is not obligated to sell to the buyer because her renunciation had terminated the agency arrangement
E) may sell to the buyer even though the agency arrangement was no longer in existence

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