What duties does an agent owe to the principal?

An agent owes several key duties to their principal, which are encapsulated in the principles of agency law. The duties include loyalty, obedience, disclosure, confidentiality, and accounting.

Loyalty requires the agent to act in the best interest of the principal and put the principal's interests ahead of their own. This means avoiding conflicts of interest and not profiting from the agency relationship without the principal’s consent.

Obedience mandates that the agent must follow all lawful instructions given by the principal. This ensures that the agent acts according to the agreed-upon terms of the agency relationship.

Disclosure involves informing the principal of all relevant information related to the agency task. The agent needs to communicate facts that could influence the principal's decisions.

Confidentiality obliges the agent to keep any sensitive information obtained during the agency relationship private, protecting the principal's interests from being jeopardized.

Accounting requires the agent to keep accurate records and account for any money or property related to the agency. This duty ensures trust and transparency in financial matters.

These duties create a fiduciary relationship, which is fundamental in agency law, ensuring that the agent acts with care and integrity while representing the principal's interests.