Agent’s Duty to Communicate Law and Legal Definition
Agent’s duty to communicate is an agent's duty to make a full disclosure to his principal of all material facts relevant to the agency. It is the duty to make a prompt, full, and frank disclosure and account to the principal of all matters concerning the agency. The duty to give the principal any information that the latter would desire to have and which can be communicated to him without violating a superior duty to a third person is an agent’s duty to communicate.
The general rule that a principal is bound by the knowledge of his agent is based upon the principle of law that it is the agent's duty to communicate to his principal the knowledge which he has respecting the subject-matter of negotiation, and the presumption that he will perform that duty. [Western Mortg. & Inv. Co. v. Ganzer, 63 F. 647, 650 (5th Cir. Tex. 1894)].