Omar hires Petra,a real estate broker,to act as his agent to sell his land for $150,000.Oil is discovered beneath the land,causing its market value to in?crease considerably.The agency agreement is likely

Question

Quizplus · Accepted Answer

The agency agreement is terminated by operation of law, as the discovery of oil changes the terms of the agreement and renders it impossible to perform. The increased market value of the land makes it a fundamentally different property than the one initially listed, and thus the terms of the original agreement no longer apply. This termination occurs automatically, without the need for mutual consent or additional consideration.

Omar Hires Petra,a Real Estate Broker,to Act as His Agent