Explain Fiduciary duty

Question

Explain what do you mean by Fiduciary duty?

Answer 1

Equity imposes a duty of care on a person who stands in a special relationship of trust to another, as in the professional-client relationship. It is a higher duty of care than that owed under a contract since it requires complete fidelity and loyalty and may be breached even though there has been no negligence. Examples of obligations imposed on the professional include avoiding conflicts of interest; refraining from using the relationship for personal profit; following the client’s instructions; disclosing all relevant information to the client; acting honestly, in good faith, and with due care; and maintaining confidentiality.