Arkansas Real Estate Practice Exam

What must all written agency agreements or contracts contain?

1. An opt-out clause

2. A confidentiality agreement

3. A specific expiration date or determinable duration

4. A non-compete clause

The correct answer is: A specific expiration date or determinable duration

Agency agreements or contracts are agreements made between two parties, where one party (the agent) agrees to act on behalf of the other party (the principal). In order for these agreements to be valid, they must contain certain key elements. One of these key elements is a specific expiration date or determinable duration, which ensures that the agreement has a set time-frame and will not continue indefinitely. Option A, an opt-out clause, is not necessary for all agency agreements and may only be included if both parties agree to it. Option B, a confidentiality agreement, may be included in some agency agreements, but not all, and is not a required element. Option D, a non-compete clause, is also not necessary for all agency agreements and may only be included if both parties agree to it. Therefore, the correct answer is C A specific expiration date or determinable duration.