Agent's duty to communicate requires reasonable diligence to inform the principal and seek instructions when difficulties arise. Agent's duty to communicate with the principal requires that, where difficulties arise, an agent must employ reasonable diligence to inform the principal of the situation and to seek and obtain the principal's instructions. The obligation encompasses active efforts to communicate facts, developments and obstacles affecting the agency task so the principal can decide the appropriate course, and precludes the agent from unilaterally resolving contested matters without first making diligent attempts to notify and obtain directions.