Which statement best describes obedience in agency duties?

• A. The broker must obey all the principal's legitimate instructions.
• B. The broker may ignore legal instructions.
• C. The broker should disclose all secrets to third parties.
• D. The broker must refuse to represent the client.

Answer: (A)

Obedience to the principal's lawful instructions is a fundamental obligation of an agent in an agency relationship. The broker must carry out directions given by the principal that are within the agent's authority and legal, helping the principal achieve their objectives. As long as the instructions are legal and ethically permissible, following them aligns the agent's actions with the principal's interests and keeps the agency functioning smoothly.

If the broker were to ignore lawful instructions, they would be breaching their fiduciary duty and could face liability. Conversely, divulging secrets to third parties would violate confidentiality, which is a separate duty owed to the principal. Refusing to represent the client would terminate the agency relationship and is not a required action under ordinary circumstances.

Therefore, the statement that best describes obedience in agency duties is that the broker must obey all the principal's legitimate instructions.