An owner of a farm employs a real estate agent to sell the farm for $1 million. The agent thereafter learns that oil has been discovered on the property, a discovery that makes the land worth $5 million. Which of the following is true?

Question

Social Studies

Dennis Randall

14 September, 13:11

An owner of a farm employs a real estate agent to sell the farm for $1 million. The agent thereafter learns that oil has been discovered on the property, a discovery that makes the land worth $5 million. Which of the following is true?

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Answers (1)

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Frank Lucero · Answer 1

The agency may be terminated because of this change in circumstances

Explanation:

The agency ends because the farmer and the agent closed a deal to sell the farm for $1 million dollars, but when the agent discovered the oil and therefore the raise to $5 million dollars of the property, the agency must end because it would be considered as a fraud to buy a property for $5 million when in paper says that the property is valued for $1 million.