Legal Dictionary of Pakistan

fiduciary relationship

A relationship in which one person is under a duty to act for the benefit of the other on matters within the scope of the relationship. ( Fiduciary relationships - such as trustee-beneficiary, guardianward, agent-principal, and attorney-client -require the highest duty of care. Fiduciary relationships usu. arise in one of four situations: (1) when one person places trust in the faithful integrity of another, who as a result gains superiority or influence over the first, (2) when one person assumes control and responsibility over another, (3) when one person has a duty to act for or give advice to another on matters falling within the scope of the relationship, or (4) when there is a specific relationship that has traditionally been recognized as involving fiduciary duties, as with a lawyer and a client or a stockbroker and a customer. - Also termed fiduciary relation; confidential relationship. Cf. SPECIAL RELATIONSHIP.