Connecticut salesperson Diane represents buyer Hector. During negotiations, the listing agent tells Diane that the seller has already received one other offer. Hector instructs Diane not to submit a counteroffer and to walk away from the deal. Diane believes this is a mistake and continues negotiating with the listing agent without Hector's knowledge. Under Connecticut agency law, Diane has violated which duty?
Correct Answer
C) Obedience, by continuing to negotiate against Hector's explicit lawful instruction to withdraw
Diane violated the fiduciary duty of obedience. Under Connecticut agency law, a buyer's agent must follow the client's lawful instructions, even when the licensee personally disagrees with the client's decision. Hector's instruction to withdraw from the deal is a lawful directive. By continuing to negotiate without Hector's knowledge or consent, Diane acted outside the scope of her authority and directly contrary to her client's explicit instruction, which is a clear breach of obedience.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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