ContractsIntermediateAlabama Exam

An Alabama real estate listing contract terminates by operation of law upon:

AThe listing price being reduced
BThe death of either party or the destruction of the propertyCorrect
CA change in market conditions
DThe listing being placed on the MLS, across most transactions

Why The death of either party or the destruction of the property Is Correct

Answer B: The death of either party or the destruction of the property

A listing contract terminates by operation of law (automatically) upon the death of either party, the mutual destruction of the property, or the expiration of the listing term.

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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