Contracts

A Virginia seller signs a listing agreement and then receives a purchase offer. Before communicating acceptance to the buyer, the seller dies. What happens to the listing agreement?

AThe listing continues and the estate is bound by any resulting sale
BThe listing agreement terminates automatically upon the seller's death✓ Correct
CThe buyer's offer automatically becomes binding on the estate
DThe listing converts to an open listing for the estate

Explanation

A listing agreement is a personal services contract (agency) that terminates automatically upon the death of the principal (seller). The seller's estate must negotiate a new listing agreement if desired.

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