Fiduciary Duties

Question 1

what is a fiduciary duty?

Answer 1

a legal or ethical relationship between two or more parties

Question 2

what is the content of a fiduciary duty?

Answer 2

loyalty, no conflict rule and no profit rule

Question 3

case for the no-conflict rule?

Answer 3

aberdeen railway co ltd v blaikie - duty to company imposed on him obligation of obtaining the iron chairs at the lowest possible price. personal interest - opposite direction - induce him to fix the price as high as possible

Question 4

explain conflict between principle and fiduciary

Answer 4

should a fiduciary’s personal interests conflict with the interests of his principal, the fiduciary must prefer the duty to his principal to his own personal interest - Boardman v Phipps

Question 5

what is the no-profit rule?

Answer 5

secret or unauthorised profits

Question 6

rule in Keech v Sandford?

Answer 6

a trustee is under a strict duty not to profit from being the owner or controller of the trust property. if a trustee does they must hold it on constructive trust for the beneficiary.