ContractsIntermediateDelaware Exam

A Delaware seller enters a 6-month listing agreement. After 4 months the property has not sold. The seller wants to cancel the listing. What are the seller's options?

AThe seller may cancel at any time without liability since listings are revocable
BThe seller may cancel with potential liability to the broker for costs incurredCorrect
CThe seller may not cancel an exclusive right-to-sell listing during the term
DThe seller may cancel only if they have another offer from a buyer they found themselves

Why The seller may cancel with potential liability to the broker for costs incurred Is Correct

Answer B: The seller may cancel with potential liability to the broker for costs incurred

Listing agreements are generally considered revocable (since personal services cannot be forced). However, the seller may still be liable to the broker for actual expenses incurred if they cancel before the term expires.

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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