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

Question

Quizplus · Accepted Answer

A fiduciary duty exists when a special relationship of trust exists between a professional and his or her client. This trust relationship requires the professional to act in the best interest of the client, rather than their own, and to avoid any conflicts of interest. This duty does not depend on a contract or a monetary exchange, but rather on the nature of the relationship between the two parties. The principle of equity may also support the existence of a fiduciary duty in certain situations.

A Fiduciary Duty Exists Between a Professional and His or Her