What must an agent do regarding the money and property received during their agency functions?

The correct answer highlights a fundamental principle in agency law: an agent has a duty to act in the best interests of their principal, which includes a duty to account for any money and property received during the course of their agency functions. This means that the agent must provide an accurate report to the principal regarding all funds and assets they have handled, ensuring complete transparency and fidelity in their dealings.

This accountability is crucial because the principal relies on the agent to manage their resources properly. The agency relationship is built on trust, and the agent's obligation to account reinforces this trust by allowing the principal to see how the agent is managing their affairs and any funds or property entrusted to them. Failure to account appropriately can lead to legal consequences for the agent, including potential claims for breach of fiduciary duty.

The other options reflect misunderstandings of this duty. For instance, retaining the money as a commission without proper authorization or accounting to the principal would violate the agent's obligations. Reporting only profitable transactions could mislead the principal and does not fulfill the requirement for full disclosure. Using property for personal gain is a direct breach of the agent's duty of loyalty and would also lead to potential legal repercussions. Thus, understanding the requirement to account fully for all transactions is essential in the