AgencyIntermediateDelaware Exam

An agency coupled with an interest cannot be terminated by the principal at will because:

AThe agent is a co-owner of the property
BThe agency also protects the agent's financial interest in the subject matterCorrect
CThe agent has held the listing for more than 6 months
DThe agent is the broker of record

Why The agency also protects the agent's financial interest in the subject matter Is Correct

Answer B: The agency also protects the agent's financial interest in the subject matter

An agency coupled with an interest is one where the agent has a financial stake in the subject of the agency. Because it protects the agent's own interests, the principal cannot unilaterally revoke it.

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.

Key Agency Terms in This Question

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