Definitions
– “Fiduciary Duty”
ˇ“Fiduciary Duty” – a legal duty of loyalty and faithfulness towards another person
ˇComes from the Latin word “fiducia”,
which means “trust”
ˇ“Relationships in
which a fiduciary obligation have been imposed seem to possess three general characteristics:
ˇ(1) The fiduciary has scope for the exercise of
some discretion or
power.
ˇ(2) The fiduciary can unilaterally exercise that
power or discretion so as to
affect the beneficiary's legal or practical interests.
ˇ(3) The beneficiary is peculiarly vulnerable to or
at the mercy of the fiduciary
holding the discretion or power.”
l--
Supreme Court of Canada in Frame v.
Smith, [1997] 2 S.C.R. 99 at 136
![MC900055561[1]](slide0026_image030.gif)
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