fiduciary relationship

The classic example of a relationship where a fiduciary relationship will exist is a trustee’s relationship to his or her beneficiary. The established categories of relationship are presumed (and may be rebutted) include relationships between agents and principals; solicitors and their clients; doctor’s obligations their patients; company directors’ and shadow directors’ relationships with their company; and the employer, employee relationship. Promoters owe fiduciary duties to the companies they promote; partners owe such duties to their partners; receivers to the persons on whose behalf they act; and guardians to their wards.

These relationships may exist where the relationship falls outside the established presumed categories. The imposition of the duty into any particular relationship relies upon the facts of the case.

There is no reason why such duties cannot exist in commercial contracts and transactions; such circumstances are rare because commercial enterprises do not regularly place their own interests behind others'.

Usage: The nature of the contractual relationship gave rise to a fiduciary relationship between the joint venture partners.

Related Words: fiduciary duty; court of equity; fiduciary.