What is an agent's primary responsibility to their principal?

An agent's primary responsibility to their principal is to act in their best interest. This duty is known as the fiduciary duty, which implies a high level of trust and confidence. An agent must prioritize the principal's interests above their own and avoid any conflicts that could compromise that loyalty. This responsibility encompasses various acts, such as making decisions that benefit the principal, fully disclosing information relevant to the principal's interests, and acting with care and diligence in their representation.

While maximizing profits might seem to align with the principal's interests, the phrase "act in their best interest" more comprehensively covers the fiduciary responsibilities that an agent holds. Developing marketing strategies or adhering to local laws may also be components of an agent's role, but these obligations fall under the broader requirement to act in the principal’s best interest, rather than serving as standalone responsibilities.