What is the primary duty of an agent to their principal?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

The primary duty of an agent to their principal is to ensure that the principal's interests are represented. This fiduciary responsibility means that the agent must act in the best interests of the principal at all times, putting the principal's needs above their own. This encompasses various obligations, including loyalty, confidentiality, and disclosure of relevant information, ensuring that any actions taken are aligned with the principal's goals and objectives.

An agent who effectively represents their principal will engage in practices that promote the principal's interests, whether negotiating contracts, providing advice, or making decisions related to transactions. This foundational principle of agency law emphasizes the trust placed in the agent by the principal, highlighting the expectation that the agent will not exploit their position for personal gain but rather advocate for the principal’s best interests throughout their engagement.

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