EAQE Law of agency, contract and negligence question: months into a three-month validity period and sells privately

EAA EAQELaw of agency, contract and negligence

A vendor revokes an exclusive (sole) agency two months into a three-month validity period and sells privately the next week. Which statement best describes his position?

A He cannot revoke the agent's authority at all during the validity period
B Revocation is free of any consequence
C He can revoke, but may be liable for breach of the agreement
D Revocation needs the EAA's approval

Show the answer and explanation

Answer: C. He can revoke, but may be liable for breach of the agreement

Answer: He can revoke the authority but may be liable for breach of the agreement. Why not the others: - Cannot revoke at all: A principal has the power to revoke authority, even if doing so breaches the contract. - Free of consequence: Revocation in breach of contract can give the agent a claim for damages (often measured by lost commission). - EAA approval: Not required. Rule: A principal can generally revoke an agent's authority at any time, but if that breaches the agency contract the agent may claim damages; whether commission is payable on a private sale depends on the agreement's terms. Source: EAA, A Study Guide to Estate Agency Law and Practice, Part 3 (revocation of agency); Practice Regulation (Cap. 511C), Form 3; as at Oct 2026