Agents are prohibited from competing with the principal during the course of an agency unless the principal agrees.

Question

Quizplus · Accepted Answer

This is a general rule of agency law known as the duty of loyalty, which requires an agent to act in the best interests of the principal and avoid any actions that could harm the principal's business or interests. Therefore, agents cannot engage in conduct that would compete with the principal's business or otherwise interfere with the principal's ability to conduct business. However, there may be exceptions to this rule if the principal consents or if the agent's competing activity is unrelated to the principal's business or within an area where the principal does not operate.

Agents Are Prohibited from Competing with the Principal During the Course