abuses of confidence

An abuse of confidence is a form of equitable fraud, whereby a person in a trusted position (such as a fiduciary or trustee) who owes some form of loyalty to another will be prevented from abusing the confidential relationship by taking advantage of the relationship and entering into a transaction with the beneficiary unless it is a fair transaction.

This principle should be distinguished from the duty not to disclose confidential information.

Usage: The banker was held liable to the customer by reason of an abuse of confidence.

Related Words: fiduciary duty; equitable fraud; account of profits; beneficiary; confidential information; intellectual property; fiduciary relationship; court of equity.