When an agent's duties conflict with the principal's own interests, _____.
A) the agent has breached the duty of loyalty
B) the agent must disclose these facts to the principal
C) if the agency is gratuitous, there is no duty of disclosure
D) the agent must resign immediately

Question

Quizplus · Accepted Answer

The agent's duty of loyalty requires complete honesty from the agent in all dealings with the principal. Further, the duty requires either avoidance of conflicts between the interests of the agent and those of the principal or full disclosure of any such conflict to the principal.

When an Agent's Duties Conflict with the Principal's Own Interests