Glossary · Business Law
Fiduciary Duty
fiduciary-duty-1651e26b0dece2ba-2026-07-28
- Type
- Glossary
- Jurisdiction
- National
- Date
- 2026-07-28
- Topic
- Business Law
The highest duty the law imposes, requiring a person entrusted with another's interests, such as a corporate director, trustee, agent, or partner, to act with loyalty and care for the beneficiary rather than for personal gain. The duty of loyalty forbids self-dealing and conflicts of interest; the duty of care requires informed, diligent decision-making. Breaches can support damages, disgorgement of profits, and removal.
Definition
The highest duty the law imposes, requiring a person entrusted with another's interests, such as a corporate director, trustee, agent, or partner, to act with loyalty and care for the beneficiary rather than for personal gain. The duty of loyalty forbids self-dealing and conflicts of interest; the duty of care requires informed, diligent decision-making. Breaches can support damages, disgorgement of profits, and removal.
Fiduciary Duty. The highest duty the law imposes, requiring a person entrusted with another's interests, such as a corporate director, trustee, agent, or partner, to act with loyalty and care for the beneficiary rather than for personal gain. The duty of loyalty forbids self-dealing and conflicts of interest; the duty of care requires informed, diligent decision-making. Breaches can support damages, disgorgement of profits, and removal. Example: The director breached his fiduciary duty by steering the supply contract to a company he secretly owned.