Under the "procuring cause" rule, when the agent is the primary factor in a purchase, the agent _____.
A) may be entitled to a commission regardless of who eventually completes the sale
B) is not entitled to compensation after termination of the agency relationship
C) is not entitled to compensation if the principal completes the purchase
D) may be entitled to compensation only if he completes the sale

Question

Quizplus · Accepted Answer

Generally, agents do not receive commissions on transactions that occur after termination of the agency relationship. However, when an agent was the primary factor in a purchase or sale, the procuring cause rule may entitle the procuring agent to her commission regardless of who eventually completes the sale. This rule is designed to permit agents to collect commissions on sales completed after termination of the agency relationship if the sale primarily resulted from the agent's efforts.

Under the "Procuring Cause" Rule, When the Agent Is the Primary