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Obedience

Definition

the fiduciary relationship obligates the agent to act in good faith at all times, obeying the principal's instructions in accordance with the contract. however, that obedience is not absolute. the agent may not obey instructions that are unlawful or unethical. because illegal acts do not serve the principal's best interests, obeying such instructions violates the broker's duty of loyalty. on the other hand, an agent who exceeds the authority assigned in the contract Will be liable for any losses that the principal suffers as a result.

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