Word Watch · Term 14 of 30 · 0:51

Fiduciary

ProductionIllustrated Click2CE lesson; AI-assisted production with Sarah narration

In brief

Fiduciary duties arise from the relationship of trust between an agent and principal, including loyalty, lawful obedience and other applicable duties.

Example

An instruction to discriminate unlawfully is not protected by the duty of obedience.

TranscriptRead along, or select a timestamp to jump there
  1. An agent serving a principal occupies a position of trust.
  2. A fiduciary must act for another's benefit within that relationship.
  3. Build the duty set:
  4. loyalty, lawful obedience, disclosure, confidentiality, accounting, and reasonable
  5. care.
  6. These duties guide the agent's conduct, not just the paperwork.
  7. Notice the word lawful.
  8. A client's instruction to discriminate unlawfully is not an instruction
  9. the agent must obey.
  10. Confidentiality also does not justify hiding a fact that the
  11. law requires the agent to disclose.
  12. Quick check:
  13. must an agent follow an unlawful discriminatory instruction from a
  14. client?
  15. No.
  16. Obedience applies to lawful instructions.
  17. Duties operate together within the law.

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