Final answer:
The question relates to a fundamental concept in agency law, where an agent agrees to follow the lawful instructions of a principal in business transactions. This duty is central to the trust-based principal-agent relationship that defines the roles and responsibilities within this legal framework.
Step-by-step explanation:
When the agent agrees to obey any lawful instruction from the principal in the execution of the transaction that is the subject of the agency, this refers to a key principle of agency law. In legal terms, an agency relationship is established when one person, the principal, authorizes another, the agent, to act on their behalf and under their control in business dealings with third parties.
This relationship is based on trust and the agent has a duty to follow lawful instructions given by the principal and to act within the authority granted by the principal. Several legal documents may refer to such an obligation, like the requirement of an officer to give a written opinion on matters within their departmental duties, the execution agreement made by authorized representatives, or the oath taken to serve noncombatant service when required by law.
This fiduciary duty ensures that the agent acts in the best interest of the principal and within the scope of the authority given, a fundamental aspect of the principal-agent relationship.