83. A seller signs a listing contract with a licensee, but several weeks later wishes to cancel the listing before it expires. Is the seller permitted to do so?
Answer: A
Yes, because it is the seller's right, but there may be liability to the licensee's firm for a commission.
A seller has the right to cancel a listing contract before it expires; however, doing so may result in potential liability for the seller regarding the commission owed to the licensee's firm.
A) Yes, because it is the seller's right, but there may be liability to the licensee's firm for a commission.
This option is correct as it acknowledges the seller's right to cancel the listing contract. It also highlights the potential consequences, indicating that while the seller can cancel, they may still be responsible for any commission due to the licensee's firm for the efforts made up to that point.
B) Yes, because the seller can transfer the listing to another licensee before the expiration date on the contract.
This option is incorrect. Although a seller may wish to transfer their listing to another licensee, simply transferring does not inherently validate the cancellation of the original contract. The initial agreement must be addressed properly, and the seller may still face liabilities.
C) No, because a listing can be canceled only if the licensee abandons it.
This option is incorrect because it misrepresents the seller's rights. A listing contract can be canceled by the seller for various reasons, and it is not contingent solely on the licensee abandoning the contract.
D) No, because a bilateral written agreement cannot be canceled during its term.
This option is incorrect. While a bilateral written agreement typically outlines obligations, it does not prevent a seller from canceling the contract. The seller retains the right to cancel, subject to any liabilities for commission.
Conclusion
The correct answer is A, as it accurately reflects the seller's right to cancel the listing contract while acknowledging the potential implications regarding commission. Options B, C, and D fail to recognize the seller's inherent rights and the conditions under which a listing can be canceled, leading to misunderstandings about the nature of real estate contracts.