Fiduciary in law is defined as property entrusted to a specific person called the fiduciary for the benefit of another. The person entrusted of the property has the responsibility of ensuring that everything is fair between the people involved.
A fiduciary relationship is referred to as one in which trust and confidence exists between the parties involved notably when it comes to business transactions and deals. This type of relationship could involve various types of people. It could happen between an agent and principal, testator and trustee, customer and bank, patient and doctor, stockholders and directors.
In the relationship involving a doctor and a patient, for instance, the doctor has the responsibility of managing the needs of his or her patients. Another would be an investor who entrusts his money to a bank’s trust department.
A fiduciary relationship shows the important role that a fiduciary plays. He or she acts on the purpose and goal of providing for the needs of another and must always take into consideration the interest of the other person. This shows then a selfless act, with no intention of benefiting or getting anything for the other person’s sake. The only purpose of the fiduciary in this case is to give satisfaction to people that they represent.
A fiduciary relationship may occur in any kind of arrangement or relationship which has a basis of trust. Trust is vital here as the person in authority acts on behalf of another individual he or she is representing with only good intentions.