Fiduciary Duty
/ˌfɪdjuˈʃɪəri ˈdjuːti/
Definitions
- (n.) A legal obligation requiring one party to act in the best interest of another, often involving trust and confidence, as between trustee and beneficiary or agent and principal.
Corporate directors owe a fiduciary duty to act loyally for the benefit of the shareholders.
Forms
- fiduciary duties
Related terms
See also
Commentary
Fiduciary duty commonly arises in relationships involving trust; it demands the highest standard of good faith and loyalty. Drafting should specify the scope and nature of this duty to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.