First Principles of Business Law

11. Termination of agency

11.2. Completion of the mandate

Read the facts below, and then answer the questions.

A owns a house which she wishes to sell. She appoints B as her agent, to find a buyer for the house. The agency agreement is in writing and one of the terms is that the period of the agency is for six weeks from the date of signing the agreement. A and B sign the agreement on June 1. 

1. If, after three weeks, B finds a buyer who enters into a binding contract to purchase A's property, does the agency automatically come to an end even though the period fixed in the contract has not expired?

2. If, within six weeks, B has not found a buyer who is willing and able to enter into a binding contract to purchase A's house, does B's appointment automatically come to an end?