What are fiduciary duties?

Fiduciary duties encompass the obligations that an agent has to act in the best interests of their principal. This relationship is rooted in trust and confidence, where the agent is expected to prioritize the principal's interests above their own and to exercise good faith, loyalty, and full disclosure in all dealings.

These duties ensure that the agent will not exploit their position for personal gain at the expense of the principal. For example, if an agent is involved in a real estate transaction, they must provide accurate information, avoid conflicts of interest, and disclose any situation that could affect the principal's interests. This fundamental principle of fiduciary duty serves as the backbone of the agent-principal relationship, reinforcing the concept that the agent must act with the utmost care and consideration for the principal's needs and goals.