Farah hires Gil, a real estate broker, to act as her agent to sell her land for $150,000. Before the land is sold at the stated price, oil is discovered beneath it, causing its market value to increase considerably. The agreement between Farah and Gil is likely

A) continued with a proportionate increase in Gil's sales commission.
B) continued until Gil tells prospective buyers of the discovery.
C) terminated by act of the parties.
D) terminated by operation of law.

Question

Danny Galvan · Accepted Answer

Final Answer : D, Explanation :  The discovery of oil significantly changes the value and nature of the property, which could lead to the termination of the agreement by operation of law, as the original terms were based on the property's value before the discovery. This is because the fundamental conditions under which the agreement was made have substantially changed.

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