 |
An Agent's primary duty is to be loyal to the Principal. (client) This involves duties: not to accept any new obligations that are inconsistent with the duties owed to the Principal. Agents can represent the interests of more than one Principal, conflicting or potentially conflicting, only on the basis of full and timely disclosure or where the different agencies are based on a limited form of authority to prevent a situation where the Agent's loyalty to any one of the multiple Principals is compromised. For this purpose, express clauses in the agreement signed by each Principal with the Agent may identify specific types or categories of activities that will not breach the duty of loyalty and so long as these exceptions are not unreasonable, they will bind the Principals. In return, the Principal must make a full disclosure of all information relevant to the case so that the Agent is able to negotiate effectively and pay the Agent either the commission or fee as agreed, or a reasonable fee if none was agreed. An Agent who reasonably incurs expenses is also entitled to reimbursement.