In an agency relationship, what is one primary duty of the agent?

In an agency relationship, one primary duty of the agent is to act in the principal's best interest. This duty is fundamental to the agent-principal relationship and is often referred to as the fiduciary duty. The agent is expected to prioritize the interests of the principal over their own and to ensure that all actions taken are in alignment with the principal's goals and objectives.

This duty encompasses various responsibilities, such as exercising reasonable care and skill in carrying out tasks, avoiding conflicts of interest, and disclosing any relevant information that may affect the principal's decisions. The essence of this duty lies in trust, as the principal relies on the agent to make decisions that will benefit them.

In contrast, profiting from the agency agreement, operating independently of the principal’s instructions, or seeking personal endorsements from third parties could lead to a breach of this fiduciary duty, indicating that the agent is placing their own interests above those of the principal. Thus, acting in the principal's best interest is not only foundational but is a legal expectation that guides the agent's conduct throughout the agency relationship.