Fiduciary Relationship – one person is under a duty to act with a high degree of care for the benefit of another on matters within the scope of the relationship

fiduciary relationship:

“A relationship wherein one person is under a duty to act for the benefit of another on matters within the scope of the relationship, which requires an unusually high degree of care. Fiduciary relationships – such as trustee beneficiary, guardian-war, principal-agent, & attorney-client – require an unusually high degree of care.  aka fiduciary relation; confidential relationship. Fiduciary relationships usually arise in one of four situations:

1.) when one person places trust in the faithful integrity of another, who as a result gains superiority or influence over the first.
2.) when on person assumes control & responsibility over another.
3.) when one person has a duty to act for or give advice to another on matters falling within the scope of the relationship.
4.) when there is a specific relationship that has traditionally been recognized as involving fiduciary duties, as with a lawyer & a client or a stockbroker & customer.” [1]

References:

[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4

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