Under what circumstances can an agent legally disobey a principal?

An agent can legally disobey a principal if following the principal’s instructions would result in breaking the law. This principle is grounded in the idea that agents have a duty to adhere not only to the agreements made with their principals but also to comply with legal and statutory requirements. When the agent faces a situation where executing the principal's instructions would cause them to violate a law, they are obligated to act in accordance with legal standards.

For instance, if a principal insists on executing a transaction that is illegal, such as selling property without proper documentation or in a discriminatory manner, the agent must refuse to comply to avoid legal repercussions for both themselves and the principal. This duty to abide by the law takes precedence over the agent's obligation to fulfill their principal's wishes. In this context, the agent's responsibility to act ethically and legally protects both their professional integrity and the interests of the broader public.