What does fiduciary duty entail for an agent?

The concept of fiduciary duty is fundamental in the relationship between an agent and their principal. It denotes a legal and ethical obligation that requires the agent to act in the best interests of the principal. This involves several key responsibilities, including loyalty, care, and full disclosure.

When an agent fulfills their fiduciary duty, they prioritize the interests and welfare of the principal above their own personal gain. This means that the agent must avoid conflicts of interest, refrain from self-dealing, and provide advice or take actions that align with the goals and needs of the principal. Additionally, the agent must demonstrate a reasonable level of care and skill in executing their duties, ensuring that their conduct is consistent with what would be expected of a competent professional in similar circumstances. This trust is integral to the agency relationship, as it assures the principal that their best interests are being safeguarded.

In essence, the fiduciary duty is about maintaining trust and acting responsibly within the scope of the agent's authority, working diligently to achieve the objectives set by the principal.