What constitutes a breach of the agent's duty of loyalty to their principal?
Correct Answer
C) Secretly buying the principal's property through a member of the agent's family
Purchasing the principal's property without full disclosure creates a conflict of interest and violates the duty of loyalty. Agents must avoid any situation where their personal interests conflict with their principal's interests, and any potential conflicts must be fully disclosed.
Why This Is the Correct Answer
A secret purchase through a relative puts the agent's interest directly against the principal's and hides it. That is a clear breach of the duty of loyalty, which requires disclosure and consent for any personal interest.
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