If an agent receives a gift from a third person with whom he is dealing on behalf of the principal,he can keep it without notifying the principal.

Question

Quizplus · Accepted Answer

According to the principle of agency, the agent has a duty to act in the best interest of the principal and avoid any conflicts of interest. Therefore, if the agent receives a gift from a third party, he or she must disclose it to the principal, as it may give rise to a conflict of interest and compromise the agent's ability to act in the principal's best interest.

If an Agent Receives a Gift from a Third Person