How does an agent's conduct affect their legal liability?

An agent's conduct can directly influence their legal liability, particularly in instances of wrongdoing. When an agent commits fraud, they can be held personally liable for their actions regardless of their relationship with the principal. This is because the agent's fraudulent conduct is a violation of legal and ethical standards that govern agent behavior.

In cases of fraud, the agent misrepresents information or acts deceitfully with the intention of benefiting themselves at the expense of another party. This not only damages the trust relationship with the principal but also exposes the agent to potential legal consequences, including civil liability or even criminal charges, depending on the severity of the fraudulent act.

The other choices do not recognize the significant impact of an agent's conduct on their liability. The notion that an agent's conduct has no effect on liability dismisses the fundamental principles of agency law. Similarly, the premises that payment of the agent or a complaint from the principal are required to consider liability overlook the inherent responsibility of the agent to act in good faith and to adhere to legal obligations at all times.