AgencyIntermediateArizona Exam

The 'prevention of performance' doctrine in Arizona agency law holds that:

AAn agent who intentionally prevents a transaction from closing forfeits their commission and may be liable to the client for consequential damages under Arizona contract law
BA party who prevents the other party from performing a contract condition cannot then claim breach for non-performance of that conditionCorrect
CA broker who actively prevents the consummation of a sale cannot collect a commission from either party, even with an otherwise valid commission agreement in place
DThe doctrine applies only in commercial real estate transactions where written agreements contain express conditions precedent that must be satisfied before performance is due

Why A party who prevents the other party from performing a contract condition cannot then claim breach for non-performance of that condition Is Correct

Answer B: A party who prevents the other party from performing a contract condition cannot then claim breach for non-performance of that condition

Under the prevention of performance doctrine, a party cannot benefit from their own wrongful prevention of a contractual condition. For example, if a seller prevents a buyer from completing inspections, the seller cannot then claim the buyer failed to meet the inspection condition.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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