Final answer:
According to general agency law, an agent's duties to a principal include the duty of loyalty, the duty of care, and the duty to inform, reflecting the agent's responsibility to act in the principal's best interests and maintain transparency.
Step-by-step explanation:
According to general agency law, an agent owes several duties to their principal. These duties are grounded in both law and ethical considerations, reflecting an agent's responsibility to act on behalf of and in the best interests of the principal. The following are some key duties an agent owes:
- Duty of Loyalty: The agent must act solely for the benefit of the principal, avoiding conflicts of interest and self-dealing.
- Duty of Care: The agent should perform their duties with the care, competence, and diligence normally exercised by agents in similar circumstances.
- Duty to Inform: The agent has an obligation to keep the principal informed of important information concerning the agency.
These prima facie duties highlight an agent's obligation to prioritize the principal's interests, maintain a standard of care, and ensure transparency in all agency dealings.