A fiduciary relationship allows parties to avoid obligations without liability.

Question

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A fiduciary relationship requires the party in the position of trust or confidence (the fiduciary) to act in the best interests of the other party (the beneficiary) and to avoid actions that may harm the beneficiary. The fiduciary owes a duty of care, loyalty, and good faith to the beneficiary, and breaching this duty can result in legal liability. Therefore, parties cannot avoid obligations without liability in a fiduciary relationship.

A Fiduciary Relationship Allows Parties to Avoid Obligations Without Liability