What is the validity of a power of attorney when the principal dies before the contract is entered?

A power of attorney is a legal document that grants an agent the authority to act on behalf of a principal in various matters, typically related to financial and legal decisions. The validity of such a document, however, hinges significantly on the status of the principal.

When a principal dies, the power of attorney automatically terminates. This means that any actions taken by the agent after the principal's death are without authority and, therefore, invalid. Consequently, if a contract is not entered into prior to the principal’s death, it cannot be validly executed by the agent since the agent’s powers no longer exist. The presiding legal framework is clear that upon the death of the principal, the agent can no longer represent or bind the principal in any legal agreements, making the proposed contract invalid.

This is rooted in the principle that a power of attorney is inherently based on the trust and authority granted by the principal, which ceases upon their death. Therefore, any actions or contracts executed after that point lack the necessary legal foundation, which is why the choice indicating that the contract is invalid if the principal was deceased is the accurate answer.