What term describes the responsibility an agent has for their principal-client's financial loss due to negligence?

The correct term that describes the responsibility an agent has for their principal-client's financial loss due to negligence is fiduciary responsibility. This term encompasses the ethical and legal obligation that an agent must act in the best interest of their client. It entails several duties, including the duty of care, which requires agents to perform their activities with a reasonable level of skill and care to prevent financial loss to the client.

While "reasonable skill and care" refers to the specific standard of performance that an agent must meet in carrying out their duties, fiduciary responsibility captures the broader context of the agent's obligation to prioritize the client's interests, which includes avoiding negligence that could lead to financial losses.

In this context, the duty of loyalty is also a crucial aspect of fiduciary responsibility, as it mandates that the agent must always act in the best interest of their client, but it does not specifically address financial losses due to negligence. The standard of practice refers to the expected level of professionalism among real estate agents but does not specifically denote the obligation toward financial losses. Thus, the comprehensive nature of fiduciary responsibility makes it the most appropriate term in this situation.