An agent has breached his fiduciary duty to the principal in which of the following situations?
A) Where the agent competes with the principal
B) Where the agent makes a secret profit
C) Where the agent uses confidential information obtained in the course of the agency for his own benefit
D) All of these.

Question

Quizplus · Accepted Answer

All of these situations involve the agent breaching his fiduciary duty to the principal. 
A) When the agent competes with the principal, he may be diverting business away from the principal, which is a breach of the duty of loyalty. 
B) When the agent makes a secret profit, he is not disclosing all relevant information to the principal, which is a breach of the duty of disclosure. 
C) When the agent uses confidential information for his own benefit, he is not acting in the best interests of the principal and may be using information that the principal trusted him to keep confidential.

An Agent Has Breached His Fiduciary Duty to the Principal