A . What is a fiduciary? b. What are the implications of an agent's fiduciary obligation? What is an agent prohibited from doing as a result of this obligation? Explain

Answer 1

a . A fiduciary is someone who acts for someone else's benefit while placing one's own interests secondary to that person's interests. A fiduciary relationship is one arising out of trust and confidence and involves the utmost loyalty and good faith.
b. An agent must always act in a way that benefits the principal and not in a way where the agent benefits to the detriment of the principal. An agent is prohibited from doing anything that provides the agent a secret profit. An agent may not represent both a buyer and a seller, without the buyer and seller having knowledge of and agreeing to the agent's dual role. An agent must disclose to the principal business opportunities the agent learns of that are within the scope of the principal's business. An agent may not use or disclose confidential information obtained in the course of the agency for his own benefit or contrary to the interest of the principal. An agent may not compete with the principal or assist the principal's competitors. The agent may not use the principal's property for the agent's or a third person's benefit.