What is a likely consequence for an agent failing to fulfill his duty of loyalty?

When an agent fails to fulfill their duty of loyalty to a client, the most probable consequence is the termination of the agency contract. The duty of loyalty is a fundamental obligation that an agent has to act in the best interest of the client, avoiding any conflicts of interest and prioritizing the client's needs over their own. If an agent breaches this duty, it undermines the trust necessary for the client-agent relationship.

Termination of the agency contract serves as a necessary action to protect the interests of the client, ensuring they are not adversely affected by the agent's disloyalty. This consequence also holds agents accountable for their actions, reinforcing the ethical standards within the industry. In contrast, the other options listed, such as an increase in client base, public recognition, or improved negotiation terms, are unlikely outcomes resulting from a breach of loyalty, as disloyal actions typically damage the agent’s reputation and professional relationships rather than enhance them.