From www.agencylaw.com with permission: Part of a quote from Mr. Charles Rounds who is Professor of Law, Suffolk University Law School. He is regarded as the Nation's leading expert on trusts and is author of 1999 addition of "LORING, A Trustee's Handbook" - the well known definitive source for trust law. "It is the duty of the agent to conduct himself with the utmost loyalty and fidelity to the interests of his principal, and not to place himself or voluntarily permit himself to be placed in a position where his own interests or those of any other person who he has undertaken to represent may conflict with the interests of his principal. When the principal employs an agent, the law presumes that he does so in order to secure to himself the benefits of the agent's skill, experience of discretion, and to reap the fruits of the performance of the undertaking. The law presumes that he expects - and it gives him the right to expect - that the agent so employed will endeavor to future the principal's interests and will use his powers of the principal's interests,and will used his powers for the principal's benefit. If, then, instead of serving the principal, the agent is endeavoring to promote his own or some other person's interest at the expense of the principal's - the fundamental considerations underlying the existence of the relation will be defeated. In order to secure the performance of this duty of the agent and to remove as far as possible all temptation and opportunity to violate it (and also to prevent extended and unprofitable litigation as to the agent's good faith ) the law positively forbids the agent doing many acts which might otherwise seem harmless. Proof of actual injury to the principal is not ordinarily required. The law judges these cases rather by the tendency of similar acts and will often strike down a transaction even though it could be shown that nothing improper was done in that case or intended to be done, if its general character brings it within the forbidden class. Consequently the law does not ordinarily permit a person to assume to become an agent where he already has in the same transaction such and interest, either of his own or as agent for some other person, as may prevent his acting fairly toward his principal. The law Recognizes that "no man can serve two master" and owes to each of them is undivided allegiance and support." There's lots more at www.agencylaw.com.

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