To act in the interests of his employer is clearly the duty of an agent. This means that on a real estate transaction, the broker should get the best price and terms for his principal. It is highly improper for him to be at the same time a broker and a purchaser. He can of course purchase the property if he acts openly in so doing and, if the owner understands it and agrees to it, he may even receive a commission. The usual rule however is that an agent cannot buy from nor sell to his principal while he acts as agent.8 A broker may be authorized to sell at a net price with the understanding that he shall receive as compensation all he may obtain above that figure. If he is merely employed to sell, however, and the owner names a price, he is in duty bound to do better if he is able, and he cannot pretend to sell at such price when in reality he is getting more, and having a secret interest in the profit thus obtained. In a New York case a broker contracted to sell at a price of $17,000. He advised his principal of this, but later receiving an offer of $26,000 for the same property, he took an assignment of the first contract and then became the vendor under a second contract at the advanced price. He then had the seller deed directly to the second purchaser, received the $26,000, but accounted to the seller for only $17,000. The court held that the broker could not appropriate the difference between these amounts, but that his principal was entitled to the benefits of the second sale.9

5 See Harten vs. Loffler, 31 App. D. C. 368; Roome vs. Robinson, 99 App. Div. 143 (N. Y.)

6Plotner vs. Chillson, 95 Pac. 777; Duryee vs. Lester, 73 N. Y. 442; Carman vs. Beach, 63 N. Y. 97.

7 Knauss vs. Krueger Brewg. Co., 142 N. Y. 75.

The same rule applies to employees of the broker and also officers of a corporation. A trustee cannot be interested in the subject of the trust. The interest of the principal "must be his interest, and he can have no interest which, conflicting with those of his principal, can work injury to the latter."10