Civil Obligations Due To Fiduciary Relationships

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Fiduciary Obligations. 1

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Fiduciary obligations are the central part of the law of equity. The reason of the law is the recognition of a trusting relationship, and to ensure the relationship is not abused. This is why Fiduciary duties may impose civil legal obligations upon the fiduciary to avoid
- Conflict of interest
- Making secret profits
- Competition with the principal
- Improper use of powers
- Misuse of principal's Property

In the past few years courts have struggled to develop a general principle; fiduciary law has been described as "a concept in search of a principal"

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Key duties that are attached to every Fiduciary Relationship

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- To avoid unauthorized profit or benefit from the relationship.
- To avoid conflict between personal interest and duty to the beneficiary.
- To avoid divided loyalties
- To not disclose confidential information
- To act in good faith and in the interest of the beneficiary
- Use their powers for a proper purpose
- All fiduciary duties cause strict liability

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Fiduciary Obligations. 3

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In traditional cases, where there is a fiduciary relationship it is presumed that any advantage gained was obtained in the breach of fiduciary. It is also possible to argue that the case falls within the fiduciary principals on the basis of its own facts. Fact based fiduciary relationships mean a lot more work for a counsel in terms of proof.
Fiduciary law is often invoked in commercial situations.