Contract Glossary

Fiduciary Duty

Definition

The highest standard of care in law. A fiduciary must act in the best interest of another party, putting that party's interests above their own. Applies to relationships like attorney-client, trustee-beneficiary, and certain business partnerships.

In Practice

If someone owes you a fiduciary duty, your financial advisor, your business partner in certain structures, your corporate board, they can't secretly profit from the relationship or prioritize their own interests. Breaching a fiduciary duty is taken seriously by courts and often results in substantial damages or removal from the position.