A fiduciary duty exists between a professional and his or her client when
A)the professional lends money to the client.
B)the principle of equity imposes such a duty.
C)the client owes money to the fiduciary.
D)a special relationship of trust exists.
E)a contract exists between the professional and the client.

Question

Quizplus · Accepted Answer

A fiduciary duty exists when a special relationship of trust is present between the professional and the client. This duty is based on the principle of loyalty and requires the fiduciary to act in the best interest of the client, even at the expense of the fiduciary's own interests. The duty can be implied by law, as in the case of attorneys or financial advisors, or can be established by contract. The existence of debt or loans does not necessarily create a fiduciary duty.

A Fiduciary Duty Exists Between a Professional and His or Her