Which statement reflects the principle of loyalty in agency relationships?

The principle of loyalty in agency relationships dictates that agents have a fiduciary duty to act in the best interests of their clients, often referred to as the principal. This means that agents are required to prioritize their client's goals and needs above their own. By acting solely for the principal, agents foster trust and ensure that they are fulfilling their responsibilities. This principle is fundamental to maintaining a strong ethical foundation in agency interactions, as it reinforces the idea that the agent's actions should align with the principal's interests at all times.

In contrast, pursuing their own interests, prioritizing their own needs, or accepting gifts from clients could create conflicts of interest or issues with loyalty. Such actions may compromise the trust necessary for a successful agency relationship, violating the essential duty an agent has towards their principal. Thus, the correct answer exemplifies the core obligation that agents have under the principle of loyalty.