An agent's duty of loyalty to the principal is breached by:

Question

Quizplus · Accepted Answer

All of the options listed breach an agent's duty of loyalty to the principal.

A) Accepting a secret gift from a third person is a breach of loyalty because it could influence the agent's actions and decisions regarding the principal's interests.

B) Acting as an agent for both parties to a transaction without disclosure is a breach of loyalty because the agent is supposed to act in the best interests of the principal, and this could create a conflict of interest.

C) Aiding a principal's competitors is also a breach of loyalty because it could harm the principal's business interests.

An Agent's Duty of Loyalty to the Principal Is Breached