ContractsIntermediateArizona Exam

In Arizona, which of the following is a VALID way to terminate a listing agreement?

AThe listing agent gets sick and cannot work
BMutual agreement between the seller and brokerCorrect
CA buyer's offer that is below list price
DThe seller hires a new real estate attorney

Why Mutual agreement between the seller and broker Is Correct

Answer B: Mutual agreement between the seller and broker

Mutual agreement between the seller and listing broker is a valid way to terminate a listing agreement. Other valid terminations include expiration, full performance, death, destruction of the property, or legal incapacity.

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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