Question

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?

Answer 1

Answer:

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.