Also known as: dual-agency · dual agencies · dual representation
Written by attorneys · grounded in primary & secondary sources — see below
An arrangement in which one agent simultaneously represents two principals in a single transaction between them. The agent must act with fairness to each principal and must disclose all facts the agent knows or should know would reasonably affect each principal's judgment in permitting the dual role, unless a principal has manifested knowledge of those facts or indifference to them.
Elena agreed to broker a sculpture sale between Paul and the City Museum. Both knew she represented the other. Elena knew the prior appraisals and the Museum's acquisition cap but did not disclose them before obtaining consent to the dual role. The Museum later sued Elena for breach after learning of the withheld information.
A broker arranged coverage for a purchaser while also receiving compensation from the insurer for the same policy placement. The purchaser sued the broker alleging improper dual representation. The court examined whether the broker's customary intermediary position created divided loyalties requiring additional disclosures.
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No. Consent to dual representation does not waive the agent's ongoing duty to act with fairness and to disclose material facts that would reasonably affect each principal's judgment about allowing the dual role.
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The agent must disclose all facts the agent knows or should know would reasonably affect each principal's judgment in permitting the dual agency, such as prior appraisals, acquisition caps, alternative options, or timing pressures.
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No. Dual agency is permitted when both principals know of the arrangement and the agent satisfies the duties of fairness and disclosure that attach to the role.
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