Fiduciary Duty
Version 1.0.0 · Updated 2026-07-28
CORE DEFINITION
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds
SCAFFOLDING EFFECT
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A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds
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When one party (the fiduciary) is authorized to act on behalf of another party (the principal) and the principal is at an informational or power disadvantage, the law imposes a standard of care and loyalty higher than that of ordinary contracts. The core is to place the principal's interests above one's own and to act with utmost good faith. Breach constitutes a fiduciary violation and can be held accountable.
MINIMUM ACTION
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Fiduciaryverified
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