The duty of loyalty requires an agent to place the principal's interests before the agent's personal interests or those of any third party. It is the agent's fiduciary duty to act solely for the benefit of the principal and not for the agent's own benefit or the benefit of any other party.

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The Duty of Loyalty

Question 267

Multiple Choice

The duty of loyalty:

A) requires a principal to place the agent's interests before the principal's personal interests or those of any third party
B) requires an agent to place the principal's interests before the agent's personal interests or those of any third party
C) requires the agent to work for only one principal at a time
D) requires the agent to work without compensation if necessary
E) refers to the medieval roots of agency law

Correct Answer: