What is the primary duty that an agent owes to the principal?

The primary duty that an agent owes to the principal is the duty of loyalty. This duty requires the agent to act in the best interests of the principal, placing the principal's interests above their own. It encompasses several obligations, such as avoiding conflicts of interest and not taking advantage of the information or opportunities that arise from the agency relationship for personal gain. Essentially, the duty of loyalty ensures that the agent remains faithful and committed to the interests of the principal, thereby fostering trust and integrity in the agency relationship.

While the duties of care, accountability, and honesty are important elements of the overall responsibilities an agent may have, they do not surpass the fundamental obligation of loyalty. The duty of care pertains to the agent's responsibility to perform their tasks competently, the duty of accountability involves keeping the principal informed about the management of the principal's resources, and the duty of honesty encompasses transparency and truthfulness in communications. However, loyalty is foundational, as it directly affects the agent's decisions and actions towards the principal's interests.