What characterizes a fiduciary relationship in agency?

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A fiduciary relationship in agency is characterized by a duty of loyalty and full disclosure to the principal. This means that the agent is obligated to act in the best interests of the principal, maintaining trust and confidence. The agent must prioritize the principal's interests over their own, providing all relevant information that could affect the principal's decision-making or interests. Such a relationship is foundational to agency law, as it ensures that the agent operates transparently and ethically, fostering a responsible and trustworthy dynamic.

The other options do not reflect the essence of a fiduciary relationship. A lack of loyalty contradicts the fundamental principle that governs fiduciary duties, while the notion of maximizing profits for the agent misunderstands the obligation of the agent to prioritize the principal's interests. Lastly, describing the relationship as transactional without responsibilities overlooks the inherent duties and ethical considerations that define a fiduciary relationship.

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