What does the duty of disclosure require from an agent?

The duty of disclosure requires an agent to inform the principal of all relevant information that could impact the principal’s decision-making. This obligation stems from the fiduciary relationship between the agent and the principal, where the agent is expected to act in the best interests of the principal. By disclosing pertinent information, the agent ensures that the principal can make informed choices regarding their dealings or decisions. This duty encompasses any information that is material and related to the agency relationship, which means it goes beyond just financial matters and should cover any situation that could affect the principal's interests or the agency outcome.

In contrast, keeping information private would undermine the agent's responsibility to act transparently and in good faith. Disclosing information only when asked would not meet the proactive obligation to keep the principal fully informed. Similarly, limiting the disclosure to just financial matters fails to satisfy the broader requirement of transparency and comprehensive communication that the duty of disclosure entails.