An agent's obligation to act in the interest of the principal is known as the duty of performance.

Question

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Courts suggest that the duty of loyalty is perhaps the most important duty an agent owes to a principal.Because the agency relationship is a fiduciary relationship (i.e.,a relationship of trust),the agent has a responsibility to act in the interest of the principal.The agent carries out her duty of loyalty to the principal in a number of ways,including avoiding conflicts of interest and protecting the principal's confidentiality.

An Agent's Obligation to Act in the Interest of the Principal