Fiduciary
Equity

A fiduciary is a person that owes another person an obligation of loyalty and good faith. A fiduciary relationship is derived from the existence of obligations of a fiduciary nature in a relationship that already exists, and not the other way around. So, where a relationship exists that requires the utmost confidence and trust, those qualities will impose the duties. Most often, the relationship requires the fiduciary to subordinate their own interests to those of their principal, that is, to act solely in the interests of the principal. It has been said that a single minded loyalty is required.

They are expected to act loyally in the other person’s interests, and where there are joint interests (such as a partnership), in the collective joint interests of the others. The duty to act in this way arises in equity, and is enforced in courts of equity. There are established categories of fiduciaries. However it is the nature of the relationship that gives rise to the status of the fiduciary (and the incumbent obligations), so a person may be considered a fiduciary in a wide range of circumstances.

For more, see fiduciary relationships.