fiduciary duty
A legal obligation to act in another party's best interest, putting their interests ahead of your own.
Definition
A fiduciary duty is a high standard of loyalty and care. Someone who holds it must act in the interests of the person they serve, avoid conflicts of interest, and be open about anything that might affect them. Trustees, company directors and some agents owe duties of this kind. Whether a marketing or creative agency owes fiduciary duties depends on the contract and local law, and many contracts describe the relationship as independent contractor instead. This matters when an agency buys media or handles client funds, because transparency about discounts and fees becomes critical. This is general information, not legal advice.
In a sentence
The agreement said the agency would disclose any rebates, reflecting a duty to act openly.
Directors owe fiduciary duties to the company they manage.
