secret profit


Also found in: Financial.

secret profit

profit made by an agent that is not revealed to the principal. An agent, being in a fiduciary position as against the principal, is not permitted to make a profit out of the performance of his duties as an agent unknown to the principal. It is his duty to account for all such profit; failure to do so will render him liable to dismissal and give the principal a ground for refusing to pay him his commission. The secret profit itself must be disgorged under the law of restitution.
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