Agency
A Nevada listing broker and their seller-client mutually agree to terminate the listing agreement before its expiration. What is this called?
ABreach of contract by the seller
BRescission or mutual cancellation of the listing agreement✓ Correct
CRevocation without cause, requiring the seller to pay full commission
DAn automatic extension of the protection period
Explanation
When both parties agree to end a contract before its natural expiration, it is called mutual rescission or mutual cancellation. Both parties release each other from further obligations under the contract. A seller may also unilaterally revoke a listing (since agency is consensual), but this could expose them to liability for the broker's damages if the revocation was without cause. Mutual cancellation is the cleanest way to end a listing agreement early, typically done in writing. The broker may waive any earned commission as part of the agreement.
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