Arizona Real Estate License Practice Exam

When all terms of a contract, such as a listing agreement, have been met, the contract is considered discharged. Discharge refers to the termination of a contract's obligations, signifying that both parties have fulfilled their respective duties as outlined in the agreement. In the context of a listing agreement, this means that the scope of work outlined in the contract has been completed, whether it be the sale of a property or the duration of the agreement. The other options highlight concepts that are not applicable in this scenario. Liquidated refers to the predetermined amount of damages agreed upon by parties in cases of breach, which does not describe the status of a contract after fulfillment. Mitigated pertains to the reduction of damages or losses, typically in the context of a breach, and rescinded indicates that a contract has been annulled or voided, rather than fulfilled. Thus, the status of the contract after all terms are satisfied is accurately captured by the term discharged.