What is a potential reason for the termination of a buyer agency agreement due to incapacity?

The termination of a buyer agency agreement due to incapacity primarily relates to the legal principle concerning the effect of a party's death on contractual obligations. When either party to a contract, in this case, the buyer or the broker, passes away, the agreement is generally terminated because the contract cannot be fulfilled by a deceased party. This principle is grounded in the notion that contractual rights and duties are personal and typically cannot be carried out by an estate or a representative. Therefore, the death of either party effectively ends the existing agreement, making it a valid reason for the termination of a buyer agency agreement due to incapacity.

Other options like loss of employment by the broker, a change of heart by the buyer, or market conditions affecting the buyer do not establish a legal incapacity that would terminate the agreement. Termination due to personal decisions or changes in the job market does not hold the same legal weight as the death of a party involved in the contract.