Which of the following is NOT a duty owed by an agent to a principal?

• A. A duty to avoid personal insolvency.
• B. A duty of loyalty to the principal.
• C. A duty to obey the principal's instructions.
• D. A duty to exercise reasonable skill, care, and diligence in executing the principal's instructions.

Answer: (A)

The key idea here is what duties an agent owes to a principal in an agency relationship. An agent must be loyal to the principal, follow the principal’s instructions, and exercise reasonable skill, care, and diligence in carrying out the principal’s instructions. These are fundamental fiduciary duties that bind the agent to act in the principal’s best interests and with due competence.

The obligation to avoid personal insolvency is not a duty that agents owe to principals. An agent’s financial condition doesn’t itself create a duty to the principal or affect how the agent must perform. The relevant duties focus on loyalty, obedience, and competent execution of tasks for the principal.