Legal Definitions - tanquam bonus vir

Tanquam bonus vir is a Latin legal phrase, primarily used in Scots law, which translates to "as an honest or honorable man." It describes the standard of conduct expected from an individual in certain roles or situations, requiring them to act with the diligence, care, and integrity that a reasonable, upright person would demonstrate.

This standard implies a duty to act in good faith, with prudence, and without self-interest, particularly when managing the affairs or assets of others. It sets a benchmark for responsible and ethical behavior.

• Example 1: A Trustee Managing an Estate

  Imagine a person appointed as a trustee to manage a deceased relative's estate for the benefit of their heirs. The trustee is expected to act tanquam bonus vir. This means they must manage the estate's assets—such as investments, property, or bank accounts—with the same prudence, honesty, and care that an honorable person would use to protect and grow their own assets, but always prioritizing the interests of the beneficiaries. They should avoid speculative investments, self-dealing, or any actions that could diminish the estate's value for personal gain.

• Example 2: A Company Director's Fiduciary Duty

  Consider a director on the board of a corporation making decisions about the company's strategic direction or significant investments. The director is expected to act tanquam bonus vir towards the company and its shareholders. This means they must make decisions in the best interest of the company, with honesty, diligence, and without allowing personal conflicts of interest to sway their judgment. For instance, they should not approve a contract with a supplier in which they have a hidden personal stake if a better, more cost-effective option exists for the company.

• Example 3: A Guardian Managing a Minor's Finances

  Suppose a court appoints a guardian to manage a minor's inheritance until they reach adulthood. The guardian is obligated to act tanquam bonus vir in handling these funds. This requires them to manage the inheritance with the utmost honesty and care, investing it wisely and using it appropriately for the minor's education, health, and well-being, rather than for their own benefit. They must ensure the funds are not squandered or misused, reflecting the conduct of an honorable person entrusted with such a significant responsibility.