ContractsIntermediateCalifornia Exam

A listing agreement is a type of contract between:

AThe buyer and seller
BThe seller and the listing brokerCorrect
CTwo brokers cooperating on a sale
DThe buyer and the listing broker

Why The seller and the listing broker Is Correct

Answer B: The seller and the listing broker

A listing agreement is an employment contract between the property owner (seller/principal) and the listing broker. It authorizes the broker to market the property and specifies the broker's compensation, the listing period, and the terms under which a commission is earned.

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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