Which agency duty involves the licensee’s obligation to act according to the principal’s instructions?

The duty that involves the licensee’s obligation to act according to the principal’s instructions is obedience. In the context of agency relationships, obedience requires the agent (the licensee) to follow the lawful directives of the principal (the client). This principle is fundamental to the fiduciary duties that agents owe their clients, as it ensures that the agent acts in the best interest of the principal by adhering strictly to their wishes, as long as those wishes are legal and ethical.

For instance, if a seller instructs their agent to list their property at a specific price or to market it in a certain way, the agent is compelled to comply with these instructions. This reinforces the trust placed in the agent by the principal and helps maintain the integrity of the agency relationship.

In contrast, other duties such as confidentiality, care, and loyalty focus on different aspects of the relationship: confidentiality protects the principal’s private information, care speaks to the agent's obligation to perform competently and diligently, and loyalty refers to the agent's commitment to act in the best interest of the principal, avoiding any conflicts of interest. Each of these duties plays a significant role in ensuring a professional and ethical relationship between agents and principals.