ContractsIntermediateAlabama Exam

In Alabama, a listing agreement is a contract between:

AThe buyer and the seller
BThe seller and the real estate brokerCorrect
CThe buyer and the buyer's agent, in general
DThe broker and AREC

Why The seller and the real estate broker Is Correct

Answer B: The seller and the real estate broker

A listing agreement is an employment contract between the seller (principal) and the real estate broker (agent). It authorizes the broker to find a buyer and specifies compensation.

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.

Key Contracts Terms in This Question

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