Thanks for the quick replies!
This was my understanding as well, however I may have taken it to an extreme.
The LG monk in our party made a deal with an evil hobgoblin(his freedom) in exchange for information on the location of an evil dragon. My cleric(Iomedae)told the monk that he would not be bound to any deals made with evil creatures. The monk player started to get angry and I thought I was playing my character properly, so I decided to have my character leave the party.
