ContractsIntermediateAlabama Exam

An Alabama broker's listing agreement that does not specify an expiration date is:

AValid for 1 year by default under AREC rules, across most transactions
BGenerally unenforceable or terminable at will if no term is specifiedCorrect
CValid for the life of the broker
DValid until the property sells

Why Generally unenforceable or terminable at will if no term is specified Is Correct

Answer B: Generally unenforceable or terminable at will if no term is specified

AREC rules and best practices require listing agreements to specify a definite termination date. A listing without an expiration date may be terminable at will and creates compliance issues.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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