Question 86

The buyer or the broker has died

The termination of an agency relationship can occur through operation of law, one such circumstance being the death of either the buyer or the broker. This event automatically dissolves the agency relationship without the need for further action.

A) The buyer or the broker has died

This option is correct because the death of either party involved in the agency relationship results in the automatic termination of that relationship. It is a legal principle that when one party in a contractual agreement passes away, the contract cannot be fulfilled, thus ending the agency.

B) The sales associate working with the buyer has died

While the death of a sales associate may affect the specific transaction or representation, it does not terminate the agency relationship between the buyer and the broker. The broker remains responsible for the agency duties, and this circumstance does not invoke operation of law to end the relationship.

C) One of the parties cancelled the buyer agency agreement

This option is incorrect because cancellation of the buyer agency agreement by one party does not fall under operation of law. Such a cancellation typically involves mutual consent or a formal process rather than an automatic legal termination due to an event.

D) The parties mutually agreed to cancel the buyer agency agreement

While mutual agreement to cancel the agreement does result in termination, it is not an example of operation of law. This option reflects a voluntary decision rather than an automatic occurrence dictated by circumstances such as death.

Conclusion

The correct answer is option A, as the death of either the buyer or the broker is a clear example of operation of law leading to the termination of the agency relationship. All other options involve actions or events that do not constitute automatic legal termination, thereby failing to meet the criteria outlined in the question.