Question

If an agent fails to perform the duty of obedience, what might the legal consequence be?

a. the agent may be charged with misrepresentation
b. The agent may be given a verbal warning by his broker.
c. The agent may receive a nasty call from the client.
d. The agent may receive a reduced commission.

Answer 1

The legal consequence for an agent failing to perform the duty of obedience can include being sued for breach of contract or breach of fiduciary duty.

Step-by-step explanation:

The legal consequence for an agent failing to perform the duty of obedience can vary depending on the specific situation. However, one possible consequence is that the agent may be held liable for breach of contract or breach of fiduciary duty. This means that the agent could be sued by their client for damages resulting from their failure to follow instructions or act in the best interest of the client.

For example, if an agent fails to follow instructions from their client regarding the sale of a property, and as a result, the client suffers financial loss, the agent may be required to compensate the client for the damages.

It's important for agents to always adhere to their duty of obedience and act in the best interest of their clients to avoid potential legal consequences.