The agent owes only honesty and truthfulness to the ______.

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Study for the Burk Baker National Test. Use flashcards and multiple choice questions with hints and explanations to prepare effectively. Get ready for your exam!

Multiple Choice

The agent owes only honesty and truthfulness to the ______.

Explanation:
In agency relationships, the agent acts on behalf of the person who hires them, called the principal. The agent bears fiduciary duties to the principal, with honesty and truthfulness as a core obligation in all dealings and disclosures. This trust is what binds the agent to act loyally in the principal’s best interests, disclose known material facts, and follow the principal’s instructions. While the agent should deal fairly with others in the transaction, the central duty of candor and integrity is directed to the principal, the party who empowered the agent to act. That’s why the completion is principal.

In agency relationships, the agent acts on behalf of the person who hires them, called the principal. The agent bears fiduciary duties to the principal, with honesty and truthfulness as a core obligation in all dealings and disclosures. This trust is what binds the agent to act loyally in the principal’s best interests, disclose known material facts, and follow the principal’s instructions. While the agent should deal fairly with others in the transaction, the central duty of candor and integrity is directed to the principal, the party who empowered the agent to act. That’s why the completion is principal.

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