The duty of loyalty actually requires an agent to place the principal's interests before the agent's own personal interests or those of any third party, not the other way around as suggested in option A. Options B, C, and D do not accurately describe the duty of loyalty.

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The Duty of Loyalty

Question 261

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) refers to the medieval roots of agency law
C) requires the agent to work for only one principal at a time
D) requires the agent to work without compensation if necessary
E) none of the other choices are correct

Correct Answer: