In an Agency relationship, if a Principal's instructions are not clearly stated, an agent can fulfill the duty of obedience by acting in good faith and a reasonable manner. This is true.
The Principal is a person with the highest authority or position in an organization. An agent is a person who acts on behalf of another person and follows their instruction to the result.
It is a relationship where the principal allows an agent to act on his or her behalf. The agency relationship is an arrangement where the principal elects an agent to represent them, to act in their interest eventually the entire process is controlled by the agent.
The principal can give the agent authority to perform several duties or the agent can be curtailed to do particular tasks.
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