Which of the following is true of an agent's duty to obey a principal's instructions?
A) An agent may always substitute his or her personal judgment for that of the principal.
B) An agent has no power to exercise his or her best judgment to further the interests of the principal, if no instruction is given.
C) An agent will be liable for any loss to the principal caused by failure to follow instructions.
D) An agent has a duty to ignore the principal's instructions if they seem unwise.

Question

Quizplus · Accepted Answer

An agent is not entitled to substitute her personal judgment for that of the principal. The agent may not ignore instructions just because they seem unwise or not truly in the best interests of the principal. If no instruction is given, the agent should exercise her best judgment to further the interests of the principal. The agent has a duty to obey the principal and will be liable for any loss to the principal caused by failure to follow such instructions.

Which of the Following Is True of an Agent's Duty