When is it appropriate to disclose a confidential fact to a third party?

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

Disclosing a confidential fact to a third party is appropriate when it is done with the client’s explicit consent. This principle is rooted in the ethical duties that an agent owes to their client, which includes confidentiality. Agents must respect the privacy of the information shared by their clients and only disclose it when they have obtained direct permission to do so. Consent ensures that the client is aware of and agrees to the disclosure, thereby maintaining trust in the professional relationship.

In many professional contexts, particularly in fields such as real estate and law, confidentiality is a cornerstone of the agent-client relationship. By obtaining explicit consent, the agent not only safeguards the client’s interests but also aligns their actions with legal and ethical standards. This fosters a relationship built on trust and respect, which is essential for effective representation.

In contrast, other options might imply either a disregard for client confidentiality or lack proper protocols for information sharing. It is crucial for agents to prioritize consent in any situation involving the sharing of sensitive information.

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