Since the agent is selected on the basis of trust and confidence,
performance refers to the personal performance of the agent
to carry out the duties and responsibilities outlined in the
agency agreement.
Obedience
An agent is bound to obey the principal’s instructions
in carrying out the agency relationship provided the agent is
not asked by the principal to do something unethical or illegal.
Loyalty
The key obligation an
agent owes to the principal is one of absolute loyalty. Simply,
the agent must always place the interest of the principal
above all others in carrying out the agency relationship.
The best example of loyalty would be that of absolute confidentiality.
Accountability
Refers to the strict accounting and proper remittance of funds
of the principal’s coming into the possession of the agent.
Notice
The agent has the duty of keeping the principal informed on
any and all matters pertinent to the transaction for which the
agent is acting. (E.g., changes in market conditions, status
changes on contracts)
Due Care
The agent must exercise reasonable skill and care in carrying
out the duties and responsibilities of the agency relationship.
Since the principal has delegated these duties to the agent,
the principal is relying on the honesty, integrity, and knowledge
of the agent to effectively represent their interests.
