Agency

Which of the following BEST describes the duty of 'obedience' in an agency relationship?

AFollowing all lawful client instructions even if the agent disagrees✓ Correct
BFollowing all client instructions including illegal ones to preserve the relationship
CObeying all brokerage company policies above client instructions
DObeying all Commission regulations before client instructions

Explanation

Obedience requires an agent to follow all lawful instructions of the client. However, an agent is never required to obey instructions that are illegal, unethical, or would violate the agent's duties to third parties.

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