AgencyIntermediateCalifornia Exam

Which fiduciary duty requires an agent to keep the principal's confidential information secret even after the agency relationship ends?

ALoyalty
BConfidentialityCorrect
CDisclosure
DReasonable care

Why Confidentiality Is Correct

Answer B: Confidentiality

The duty of confidentiality obligates the agent to protect the principal's confidential information (such as motivation to sell or maximum price the buyer will pay) and this duty survives termination of the agency relationship.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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