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Simple English definitions for legal terms
fiduciary contract
Read a random definition: Nullum Tempus Act
A quick definition of fiduciary contract:
A fiduciary contract is an agreement between two parties where one party gives something to the other party with the condition that the second party will return it to the first party. It's like borrowing something from a friend and promising to give it back.
A more thorough explanation:
A fiduciary contract is an agreement between two parties where one party entrusts something to the other party with the condition that it will be returned to the first party.
For example, if a person hires a financial advisor to manage their investments, they are entering into a fiduciary contract. The financial advisor is entrusted with the responsibility of managing the investments in the best interest of the client and returning the profits to the client.
Another example of a fiduciary contract is when a person hires a lawyer to represent them in a legal matter. The lawyer is entrusted with the responsibility of representing the client's interests and returning any settlements or damages awarded to the client.
These examples illustrate the definition of a fiduciary contract because in both cases, one party is entrusting something valuable to another party with the expectation that it will be returned to them. The second party is obligated to act in the best interest of the first party and return any profits or damages to them.