What does the duty of care require from an agent when performing functions for the principal?

The duty of care requires an agent to exercise reasonable care when performing functions for the principal. This means that the agent must act with the level of skill, diligence, and prudence that a reasonably competent agent would exhibit under similar circumstances. The focus here is on the agent’s conduct and whether it aligns with what is typically expected in their role, considering the nature of the tasks they are undertaking.

This standard does not impose an absolute guarantee against damages or losses, as no agent can promise that their actions will always yield perfect outcomes. Instead, the emphasis is on the process and the agent's efforts to act responsibly and with appropriate attention to the potential risks involved in their actions. Additionally, the duty of care encompasses aspects such as timely execution of tasks but centers more specifically on the overall reasonableness of the agent’s approach.

Moreover, while profit for the principal is important, the duty of care itself does not mandate that profit must always be the overriding priority; it focuses rather on ensuring that the agent acts responsibly and carefully in the best interest of the principal.