Final answer:
An agent's duty to be honest with all parties may be compromised by their fiduciary duty of confidentiality to their principal. This can occur when honesty requires revealing confidential information. Other fiduciary duties include accountability, reasonable skill and diligence, and obedience, though these are less likely to conflict with honesty.
Step-by-step explanation:
In the context of agency law, an agent has various fiduciary duties toward their principal. Among these duties, the duty to be honest with all parties could potentially come into conflict with the duty of confidentiality. The duty of confidentiality requires an agent to protect and not disclose certain information about the principal that could harm their interests. If an agent comes across a situation where being honest with a third party means revealing confidential information about the principal, the agent may face a dilemma in which fulfilling one duty compromises another.
Accountability, reasonable skill and diligence, and obedience are also fiduciary duties of an agent. Accountability pertains to the agent accounting for all transactions and property related to the principal. Reasonable skill and diligence mandate the agent to act with the care and skill that is reasonably expected from someone in their position. Obedience requires the agent to follow lawful instructions from the principal.