Rachel has been laid off from her job and will be unable to meet all of her financial obligations if a new job does not materialize in six months.She canvassed the possibility of selling her home with several agents.One agent offered a reduced commission rate and a guarantee her home will sell within three months without a price reduction.Why should Rachel secure a formal contract based on her negotiations with this agent?

Question

Quizplus · Accepted Answer

By securing a formal contract, Rachel will have legal grounds to sue the agent for breach of contract if they fail to perform as promised. This will provide her with a sense of security and assurance that the agent will do their best to sell her home within the promised timeframe, without requiring a price reduction. Option A is incorrect as the contract should protect both parties' interests, not just the agent's. Option B is not the best choice as the agent should be motivated to perform regardless of a formal contract due to their reputation. Option C is not relevant as the question does not mention anything about no-fault cancellation.

Rachel Has Been Laid Off from Her Job and Will