LAW 561-002 – Business Associations
Duty of Loyalty
The duty of loyalty flows from the fiduciary nature of the agency relationship and requires, among other things, that the agent:
- Account for all profits not promised to the agent. R3A § 8.02.
- Refrain from acting as or for an adverse party. R3A § 8.03.
- Refrain from competing with the principal. R3A § 8.04.
- Refrain from using the principal's property or confidential information for personal purposes. R3A § 8.05.
- Disclose relevant information to the principal. R3A § 8.11.
- Segregate the principal's property and keep and render accounts. R3A § 8.12.
- Act in accordance with a general duty of good conduct. R3A § 8.10.