Flashcards in Chapter 5 Deck (8)
Define fiduciary duty.
- a duty imposed on a person who stands in a special relation of trust and loyalty to another
Define third-party liability.
- liability to some other person who stands outside a contractual relationship
Define duty to account.
- the duty of a person who commits a breach of trust to hand over any profits derived from the breach
- an intentional tort imposing liability when damage is caused by a false statement made with the intention of misleading another person.
- an express statement to the effect that the person making it takes no responsibility for its accuracy.
What are the 3 characteristics of fiduciary relationships?
1) fiduciary has undertaken to act in the best interest of the beneficiary
2) beneficiary is vulnerable to or at the mercy of fiduciarys control or discretion
3) a legal or practical interest of the beneficiary could be harmed by the fiduciarys exercise of discretion or control
What are the 6 factors applicable to assessment of the fiduciary nature?
2) client relationship
6) standards expressed in a professional code of conduct