Daniel has worked as a computer programmer and senior officer of Litem Systems Inc for several years.He has built up a close relationship with a number of Litem clients.One of them asks Daniel if he can do some programming work on the side.It is the same kind of work that Daniel does for clients of Litem.The client would hire and pay Daniel directly.Daniel would do the work on nights and weekends.Daniel is interested, but he cannot take the work because it would be a breach of his fiduciary duty and, if he does take it, he could be forced to pay over all of his profits to Litem.

Question

Quizplus · Accepted Answer

Daniel's fiduciary duty means that he has a legal obligation to act in the best interests of his employer, Litem Systems Inc. Taking work on the side from one of Litem's clients would be a conflict of interest and a breach of this duty. Additionally, his employment contract with Litem may include clauses that prohibit him from doing freelance work that competes with Litem's business. If Daniel were to take the work, he could be sued by Litem for breach of contract and forced to relinquish his profits.

Daniel Has Worked as a Computer Programmer and Senior Officer