Which of the following statements is true of contracts having fiduciaries?
A) Agreements by fiduciaries that favor the interests of a third person at the expense of their principals' interests are considered legal.
B) Any agreement that tends to induce a fiduciary to breach his or her fiduciary duties is considered legal.
C) A fiduciary is a provision in a contract that attempts to relieve one party to the contract from liability for the consequences of his or her own negligence.
D) A fiduciary can lawfully enter an agreement by fully and fairly disclosing the conflict to his or her principal or beneficiary in advance.

Question

Quizplus · Accepted Answer

Any agreement that tends to induce a fiduciary (a person in a position of trust or confidence like a trustee, agent, or partner) to breach his or her fiduciary duties is illegal. The only way a fiduciary may lawfully enter such an agreement is by fully and fairly disclosing the conflict to his or her principal or beneficiary in advance.

Which of the Following Statements Is True of Contracts Having