What duty does an agent owe to his principal?

An agent owes a duty of loyalty and good faith to their principal, which is a fundamental principle in agency law. This obligation requires the agent to act in the best interests of the principal, avoiding conflicts of interest and not benefiting personally at the principal's expense. The duty of loyalty ensures that the agent prioritizes the principal's goals and objectives, fully disclosing any information that may affect the principal's decisions.

Good faith encompasses honesty, fairness, and sincerity in the agent's dealings with the principal. This means that the agent should not only refrain from misleading the principal but also actively promote the principal's interests. When an agent adheres to these duties, it builds trust and maintains a positive relationship between the principal and the agent, which is vital for effective collaboration and mutual benefit in their professional engagement.