What happens to the fiduciary duties owed by an agent if the agency relationship ends?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

When an agency relationship concludes, certain fiduciary duties, such as the duty of confidentiality, persist even after the formal relationship has ended. This means that the agent is still obligated to protect any confidential information they may have obtained during the course of their duties, regardless of whether they are still acting on behalf of their principal.

This principle is rooted in the idea that the trust and sensitive information exchanged during an agency relationship must be safeguarded to ensure that the interests of the principal are not compromised. Other fiduciary duties, like loyalty and full disclosure, typically do not continue once the agency relationship is terminated, but confidentiality is distinct because it revolves around the privacy of the principal's information, which the agent is expected to uphold over time.

Understanding that confidentiality remains vital enhances the importance of trust in agency relationships and highlights the long-lasting implications of such duties, even after the formalities of the relationship have ended.

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