Contracts

A Nevada seller signs a listing agreement with Broker A. Before any offers are received, the seller dies. What happens to the listing agreement?

AThe listing continues and the executor must honor it
BThe listing agreement is automatically terminated because the death of either party terminates a personal services contract✓ Correct
CBroker A may continue marketing the property for 30 days
DThe listing transfers to the seller's spouse automatically

Explanation

A listing agreement is a personal services contract that depends on the continued existence of both parties. The death of the seller (or the broker) automatically terminates the contract.

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