In a single agency transaction, which statement is true?

• A. The agent owes fiduciary duties to both parties in a transaction.
• B. The agent owes fiduciary duties to the party the agent represents.
• C. The agent owes fiduciary duties to the public.
• D. The agent owes no fiduciary duties.

Answer: (B)

In single agency, the agent represents only one party in the transaction and owes fiduciary duties to that client. These duties—loyalty, obedience to lawful instructions, disclosure of all material facts that could influence the client’s decision, confidentiality, accounting for funds, and reasonable care—are meant to protect the client’s interests above all else. The other party is treated as a customer, not a principal, so the agent does not owe fiduciary loyalty to them, just general duties like honesty and fair dealing. Therefore, the statement that the agent owes fiduciary duties to the party they represent best fits how single agency works.