Is the aforementioned Hadith authentic, and must one act upon it?

The aforementioned hadith was graded as 'Hasan' by Al-Albani, and it is a proof that must be acted upon. The hadith encourages abandoning argumentation and lying, and cultivating good character. Abandoning lying and argumentation is obligatory based on other evidence. As for the hadith, it encourages abandoning these traits even if one is in the right. The blameworthy lying refers to that which has no preponderant benefit, whereas lying may be recommended or obligatory in certain situations, such as reconciling disputants or preventing the destruction of an innocent life.