What is a key duty of agents towards their principals?

The key duty of agents towards their principals is to maintain confidentiality. This duty is fundamental in the agency relationship, as it helps to build trust between the agent and the principal. Confidentiality means that agents must not disclose sensitive information about the principal's business, personal matters, or any transactions made during their agency without permission. This duty protects the principal's interests and ensures that sensitive information does not fall into the hands of competitors or others who could exploit it.

Maintaining confidentiality is crucial because it fosters a safe environment for open communication and encourages the principal to share information necessary for effective representation. By upholding this duty, agents demonstrate professionalism and integrity, which are essential in establishing and maintaining a successful agency relationship.