What obligations does an agent have to third parties?

An agent has a fundamental obligation to act honestly and provide accurate information to third parties. This responsibility forms part of the agent's duty of care and loyalty towards both the principal and third parties involved in transactions. When an agent misrepresents facts or acts dishonestly, it can lead to significant harm not only to the third party but also to the principal's reputation and business interests. Therefore, maintaining integrity and transparency in dealings is essential in fostering trust and ensuring that all parties can make informed decisions based on reliable information.

Maximizing profits for the principal, while important, is primarily the agent's duty to the principal rather than to third parties. The obligation of maintaining confidentiality is crucial but is specifically directed towards the principal and does not inherently apply to third parties, where accuracy and honesty become more prominent. Prioritizing personal interests over those of the principal contradicts the agent's primary responsibility and undermines the principles of agency law, which emphasizes fiduciary duty.