What type of agreement is typically binding even if the principal dies?

The type of agreement that is typically binding even if the principal dies is a listing agreement. In real estate, a listing agreement is the contract between a property owner (the principal) and a real estate agent or broker, granting them the authority to sell the property. This agreement is viewed as a personal service contract, and it generally continues even in the event of the principal's death, ensuring that the agent can still proceed with the sale of the property.

This characteristic of the listing agreement ensures that the agent’s efforts to sell the property can continue to benefit the principal’s estate, as the contract remains in effect. It's important for heirs or representatives of the deceased principal to be notified, as they may need to complete formalities or provide consent for the property to be sold, but the core agreement remains enforceable.

In comparison, a purchase agreement usually involves the buyer and seller agreeing on the terms of a sale; if either party dies before the agreement is fulfilled, it may create complications regarding the enforceability of that contract. A lease agreement typically terminates upon the death of the tenant, unless it explicitly states otherwise, as leases are generally tied to the life of the tenant. Lastly, a mortgage agreement is tied to the borrower, but upon their