How is "confidentiality" defined in the agency context?

In the context of agency, "confidentiality" refers specifically to the agent's duty to protect and not disclose any confidential information related to the principal's interests without their consent. This principle is crucial as it helps maintain trust in the agent-principal relationship. The agent is required to keep sensitive information, such as personal circumstances, financial details, or strategies, private unless disclosure is authorized by the principal or legally mandated.

This understanding of confidentiality ensures that the principal feels secure sharing important information with their agent, knowing it will be safeguarded. It is a fundamental aspect of the fiduciary duty that an agent owes to their principal, emphasizing the importance of loyalty and trustworthiness within the agency relationship. Maintaining confidentiality supports ethical practices and strengthens the professional bond between the agent and the principal.