What term describes a covert benefit gained by an agent from a transaction?

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Multiple Choice

What term describes a covert benefit gained by an agent from a transaction?

Explanation:
An agent has a fiduciary duty to act for the principal and disclose any personal gain from a deal. When the agent profits from the transaction without telling the principal, that gain is called a secret profit. The word “secret” highlights the concealment, which violates the duty of loyalty and full disclosure. In practice, secret profits can lead to remedies such as disgorgement of the profit, damages, or disciplinary action. Other phrases don’t capture the standard legal label for an undisclosed personal gain.

An agent has a fiduciary duty to act for the principal and disclose any personal gain from a deal. When the agent profits from the transaction without telling the principal, that gain is called a secret profit. The word “secret” highlights the concealment, which violates the duty of loyalty and full disclosure. In practice, secret profits can lead to remedies such as disgorgement of the profit, damages, or disciplinary action. Other phrases don’t capture the standard legal label for an undisclosed personal gain.

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