Under what condition can a seller cancel a listing agreement without legal liability?

Prepare for the Oklahoma Broker Exam. Dive into flashcards and multiple choice questions with detailed hints and explanations. Ace your exam!

A seller can cancel a listing agreement without legal liability when the broker violates the terms of the contract. This is based on the principle of mutuality in contracts, where both parties are expected to fulfill their agreed-upon obligations. If the broker fails to meet their obligations, it gives the seller a valid reason to terminate the agreement without incurring penalties.

In this situation, the seller is justified in ending the contract due to the breach of terms by the broker, which undermines the basis of their agreement. It's essential for both parties to adhere to the terms to maintain a legally binding contract, and a breach from one side allows the other side to act accordingly.

The other conditions mentioned, such as selling the property, changing market conditions, or simply changing one’s mind, do not automatically provide a legal basis for cancellation without liability. Selling the property would typically satisfy the purpose of the agreement rather than terminate it. Market conditions, on the other hand, are variables that do not constitute a breach of contract. Similarly, a seller’s change of heart isn't a contractual breach; rather, it reflects a personal decision and does not exempt them from potential liability if they cancel the agreement.

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