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As an agent with fiduciary responsibility, what is true about your power to act on behalf of the principal?
Your ability is limited by law
You are responsible for the principal's decisions
You cannot make a decision without approval from the principal
You have the legal power to bind the principal to your decisions
The correct answer is: You have the legal power to bind the principal to your decisions
When acting as an agent with fiduciary responsibility, you indeed possess the legal power to bind the principal to your decisions, provided that you are acting within the scope of your authority. This means that, as an agent, you are empowered to make decisions and take actions that affect the principal's interests, and those decisions are legally recognized as being made on behalf of the principal. Fiduciary responsibility entails a high level of trust and obligation to act in the best interest of the principal. This includes making informed choices and taking actions that align with the principal's goals and interests. As long as the actions are within the authority granted to you, the principal is bound by those decisions, which is a fundamental aspect of the agent-principal relationship. This legal authority reinforces the importance of understanding the scope of your powers and the responsibilities that come with them, ensuring that decisions are made judiciously and in the principal's best interest.