What is a key duty of an agent in an agency relationship?

In an agency relationship, a key duty of an agent is to avoid conflicts of interest. This obligation is fundamental to maintaining the trust and loyalty that the principal expects from the agent. When an agent acts on behalf of a principal, they must prioritize the principal's interests above their own or any third party's interests. This means that if an agent has any personal or financial interests that could interfere with their ability to act in the best interests of the principal, they must disclose these potential conflicts and take steps to avoid them.

By ensuring that they do not pursue interests that conflict with those of the principal, agents uphold their fiduciary duty and foster a relationship based on trust. This principle is essential in various contexts, including those involving artists, galleries, and art dealers, where the integrity of the agent's actions directly impacts the principal's outcomes and overall success.