What term describes the agent's duty to avoid secret profits?

The concept that describes an agent's duty to avoid secret profits is loyalty. This duty is fundamental to the agent-principal relationship, emphasizing that an agent should act in the best interest of the principal and place the principal's interests above their own. The obligation of loyalty requires that an agent refrain from engaging in any conduct that could lead to a conflict of interest or that could potentially result in the agent profiting at the expense of the principal without full disclosure and consent. This trust ensures that the agent acts ethically and maintains the integrity of their responsibilities.

Loyalty includes various aspects, such as avoiding self-dealing and the disclosure of any conflicts that may arise during the course of the agency. It reflects the overall duty of an agent to maintain a relationship built on trust and to prioritize the principal's needs and objectives over personal gain.

In contrast, the other terms—confidentiality, care, and good faith—represent different facets of the agent's obligations. Confidentiality involves protecting sensitive information related to the principal, care entails performing duties with due diligence and skill, and good faith refers to acting honestly and fairly in all dealings. While these responsibilities are also essential, they do not specifically address the issue of avoiding secret profits as directly as the duty of