Agency
In Illinois, what is the concept of 'undisclosed dual agency' and why is it prohibited?
ADual agency where both parties receive the same level of service; permitted in Illinois
BSecretly representing both buyer and seller without disclosure and consent; prohibited because it is a fundamental breach of fiduciary duty✓ Correct
CDual agency in commercial transactions only; permitted with court approval
DRepresenting two buyers for the same property; permitted in competitive markets
Explanation
Undisclosed dual agency occurs when an agent secretly represents both the buyer and seller without informing or obtaining consent from both parties. This is strictly prohibited in Illinois because it is a fundamental breach of the fiduciary duty of loyalty—the agent cannot fully represent both parties' conflicting interests without their knowledge.
Related Illinois Agency Questions
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