An agent does not owe a duty to notify the principal of important information he learns concerning the agency.

Question

Quizplus · Accepted Answer

An agent generally owes a duty to notify the principal of important information related to the agency. This duty is referred to as the duty of disclosure, and it arises from the agent's fiduciary relationship with the principal. The duty of disclosure requires the agent to communicate all material facts that might affect the principal's interests in the transaction. Failure to disclose such information can result in the agent being held liable for breach of fiduciary duty.

An Agent Does Not Owe a Duty to Notify the Principal