The Mouth was a diplomat in both the movie and the book
When the Mouth addresses Aragon, Gandalf, and the others, in the film, he begins by asking "Is there any in this route with authority to treat with me?". To treat as defined below is a term for negotiating.
Treat- to negotiate terms- intransitive verb to negotiate, especially in order to reach a settlement
Thus the was there to negotate and not just to fling insults. So there was really no reason to kill him.
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