The correct answer is C. A minor kitchen fire does not automatically terminate a listing merely because some physical damage occurred. If the property continues to exist and brokerage performance remains possible, the agency relationship can continue, subject to the listing agreement and the parties ' decisions.
Massachusetts Board seller-agency curriculum identifies several common terminating events: expiration, mutual agreement, completion of performance, death or incapacity, bankruptcy, and impossibility of performance, such as destruction of the property.
That distinction is crucial. A casualty severe enough to destroy the subject property can make performance impossible and terminate the relationship. A repairable kitchen fire generally does not.
The damage could nevertheless create new disclosure, insurance, pricing, and contractual issues, particularly if the property is already under agreement.
Repudiation can also terminate the agency authority while potentially exposing the repudiating party to liability for breach. Thus, termination of agency authority and liability under the listing contract are related but distinct questions.
Study Guide Reference: Agency — Termination of Licensee/Consumer Relationships; Impossibility and Repudiation.
