Discuss the agent's duties to the principal

What will be an ideal response?

Just as a principal has legal duties to an agent, the agent has legal obligations toward the principal: a) loyalty; b) obedience; c) accounting; and d) performance. Courts have often indicated that the agent's most important obligation is fiduciary. The fiduciary obligation includes loyalty to the principal—that is, acting on behalf of one principal only to avoid conflicts of interest, communicating all material information to the principal, and refraining from acting in a manner that is adverse to the principal's interest. The agent has the duty to follow all reasonable and lawful instructions of the principal. If the manufacturer of a drug to alleviate the symptoms of the common cold tells its advertising department, salespeople, and distributors to tout the product as a cure for the common cold, these agents have no duty to follow the instructions because they are in violation of Section 5 of the Federal Trade Commission Act. Whenever the principal requests an accounting of money or property, it is the duty of the agent to hand over the requested material. When courts have been asked to determine how the duty of accounting is met, their answers have varied from case to case, but the keeping of accurate books that can be viewed by the principal is the minimum activity required.