Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of these statements about this situation is true?

"The agency agreement only terminates if the broker or the principal declares bankruptcy."

Explanation:

Before an individual or company lists his property with an agent or broker, he or she must sign an agreement, which clearly states the terms of the agreement, and one of these terms is the fact that the contract or agreement cannot be cancelled. However, if the principal or the broker declares bankruptcy, on the condition, the agreement is terminated.