What should an agent do if they discover a conflict of interest?

When an agent discovers a conflict of interest, the appropriate course of action is to disclose the conflict and obtain consent from the affected parties or to withdraw from the situation if consent cannot be obtained. This obligation stems from the fiduciary duty that agents have to act in the best interests of their clients.

By disclosing the conflict, the agent is being transparent, allowing the client to make informed decisions about whether to proceed with the transaction under the circumstances. If the agent does not disclose the conflict, they risk breaching their fiduciary duty, which can lead to legal repercussions and damages to their professional reputation.

Choosing to ignore the conflict or to proceed with the transaction for personal gain undermines the ethical obligations agents have towards their clients and can create significant legal and relational issues. Consulting with a lawyer is sometimes advisable for complex situations, but the immediate need is to disclose the conflict and address it appropriately with the principal. Hence, obtaining consent or withdrawing when faced with a conflict of interest is the proper ethical response.