fiduciary relationship

fiduciary relationship

A relationship in which one person is under a duty to act for the benefit of another on matters within the scope of the relationship.

? Fiduciary relationships ¡ª such as trustee¨Cbeneficiary, guardian¨Cward, principal¨Cagent, and attorney¨Cclient ¡ª require an unusually high degree of care. Fiduciary relationships usu. 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 one person assumes control and 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, or (4) when there is a specific relationship that has traditionally been recognized as involving fiduciary duties, as with a lawyer and a client or a stockbroker and a customer.

¡ª Also termed fiduciary relation; confidential relationship. Cf. special relationship


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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.