What duty does an agent owe to their principal?

An agent owes the principal the duty of loyalty and good faith, which are fundamental principles in agency law. This duty requires the agent to act in the best interests of the principal, putting the principal's needs and objectives above their own personal interests. The agent must avoid any conflicts of interest and should not engage in activities that could harm the principal or divert opportunities that belong to the principal.

Loyalty encompasses various responsibilities, like not taking advantage of the principal’s opportunities and keeping confidential information private. Good faith further reinforces the expectation that the agent will act honestly and sincerely in all dealings with the principal. This combination of loyalty and good faith is essential in maintaining trust and ensuring that the agency relationship operates smoothly and effectively.

While the other choices mention important attributes that an agent should exhibit, loyalty and good faith go to the core of what an agent owes to their principal and are legally enforceable standards in an agency relationship.