Fiduciary Duty

What is Fiduciary Duty in Tort Law?

Quick Definition

Fiduciary duty is a legal obligation where one party, the fiduciary, must act in the best interests of another party, the beneficiary. This duty requires loyalty and care, often arising in relationships like those between trustees and beneficiaries or directors and shareholders.

In Context

Fiduciary duty is crucial in situations where trust and confidence are placed in one party by another. For instance, in the case of Bristol and West Building Society v Mothew (1998), the court highlighted the fiduciary's duty to avoid conflicts of interest and act with utmost good faith. In exams, you might be asked to evaluate whether a fiduciary duty exists and if it has been breached, potentially leading to remedies like compensation or restitution.

See Also

• Duty of Care

• Breach of Trust

• Conflict of Interest

Learn More

For a comprehensive look at fiduciary duty, check out our Tort Law Notes for detailed case studies and revision tips.