In a dual agency agreement, what is the traditional common-law agency duty that a licensee cannot fully perform?

In a dual agency agreement, what is the traditional common-law agency duty that a licensee cannot fully perform?

• A. Confidentiality
• B. Loyalty
• C. Disclosure
• D. Diligence

Answer: (B)

In a dual agency situation, a licensee represents both the buyer and the seller in the same transaction, which creates inherent conflicts of interest. One of the traditional common-law agency duties is loyalty, which requires the agent to act solely in the best interest of one party. In a dual agency, the agent's ability to prioritize the interests of one client over the other is compromised. This diminishes the agent's capacity to provide undivided loyalty to either party, as the agent must remain neutral and cannot favor one client over another. Therefore, loyalty is the key duty that cannot be fully performed in a dual agency setting, illustrating the complexity and potential for conflict inherent in such arrangements.

In a dual agency situation, a licensee represents both the buyer and the seller in the same transaction, which creates inherent conflicts of interest. One of the traditional common-law agency duties is loyalty, which requires the agent to act solely in the best interest of one party. In a dual agency, the agent's ability to prioritize the interests of one client over the other is compromised. This diminishes the agent's capacity to provide undivided loyalty to either party, as the agent must remain neutral and cannot favor one client over another. Therefore, loyalty is the key duty that cannot be fully performed in a dual agency setting, illustrating the complexity and potential for conflict inherent in such arrangements.