When can an agent be held liable for a breach of duty?

An agent can be held liable for a breach of duty when they fail to perform their fiduciary duties. In the context of agency law, fiduciary duties encompass various responsibilities that an agent has to their client, including loyalty, obedience, disclosure, confidentiality, and accountability. These duties are essential in maintaining the trust and integrity of the relationship between the agent and the principal.

If an agent does not fulfill these fiduciary responsibilities, it can lead to significant negative consequences for the principal, including financial loss or damage to their interests. For example, if an agent neglects their duty to disclose important information that could affect a property transaction, this breach can result in liability.

Other options might reflect scenarios in which an agent could face repercussions, but they relate more to service quality or communication rather than a fundamental breach of the fiduciary relationship. While misrepresentation, inadequate service, or negotiating poorly can lead to dissatisfaction, they do not inherently address the specific breach of fiduciary duty that is the crux of this question.