In an agency agreement, what is the primary responsibility of the agent?

The primary responsibility of the agent in an agency agreement is to act in the best interest of the principal. This principle, known as the fiduciary duty, requires the agent to prioritize the interests of the principal above their own. Agents must execute their duties with loyalty, care, and good faith, ensuring that any actions taken are beneficial to the principal they represent.

This obligation encompasses various aspects, including making informed decisions that align with the principal's goals, disclosing material information that could influence the principal's choices, and avoiding any conflicts of interest. By focusing on the principal's best interests, agents build a relationship of trust and accountability, which is foundational to agency law.

The other options do not capture this essential responsibility. Seeking the highest profit for themselves contradicts the fiduciary duty, as it places the agent’s interests ahead of the principal's. Performing instructions at their discretion may lead to decisions that are not aligned with the principal's wishes or needs, thus failing to fulfill the agent's duty. Maintaining confidentiality is important, but it is part of a broader responsibility; it does not encapsulate the primary function of ensuring the principal's interests are prioritized.