Agency

In Idaho, what happens to an agency relationship if the property under a listing agreement burns down?

AThe agency continues until the listing term expires
BThe agency typically terminates because the subject matter (the property) has been destroyed, making performance impossible✓ Correct
CThe listing agent continues to earn a commission on any insurance proceeds
DThe agency automatically extends for 6 months

Explanation

Agency may terminate when the subject matter of the agency (the property) is destroyed, making performance of the agency's purpose impossible. The listing terminates because there is no longer a property to sell.

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