Agency

In Idaho, what happens to an agency agreement when the listed property is destroyed by fire before sale?

AThe agency agreement continues until the listing expiration date
BThe agency relationship terminates by operation of law✓ Correct
CThe agent is entitled to a partial commission
DThe agreement automatically extends by 90 days

Explanation

When the subject matter of an agency agreement (the property) is destroyed or ceases to exist, the agency relationship terminates by operation of law. There is no longer a property to sell, so the agreement becomes impossible to perform.

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