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A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer?.

Solutions for A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person. The person who is delegated trust and confidence would then have a fiduciary duty to act for the benefit and interest of the other party. The party who owes a duty to act for the best interest of the other party is called the fiduciary. The party to whom the duty is owed is called principal.Fiduciary relationships are created in many legal assignments such as contracts, wills, trusts, elections, corporate settings, The main purpose for fiduciary relationships is to establish an honest and trusted relationship between two parties where one party can rely and be confident that the other person is working for their interest and are not using their power for their own interest or the interest of a third party.In order to determine the existence of fiduciary relationship, it could be said that whether one has reposed confidence in another, i.e. whether a confidential relationship exists, is the material test to determine the existence of fiduciary relationship.For instance, in a transaction with the trustee who is under an obligation to protect the interest of the beneficiary, for whose benefit the confidence has been reposed on him can be stated as a fiduciary relationship. The basic principle of the trust is that the trustee generally acts voluntarily and is not paid for his services, though he may claim remuneration if he can show a specific entitlement of it. A trustee cannot be a purchaser of trust property, as he cannot be both seller and purchaser.In a fiduciary relationship induced by profit a person, in whom a confidence is reposed, gains profits by availing himself of his position. Equity refuses such a person (fiduciary) to claim for himself the profit which has been obtained by him in pursuance of his undertaking or discharge of his own obligation.Q. Profits obtained by a person in whom confidence is reposed, by using his skill and expertise, can be retained by such persons for their benefit. Determine the truth of this statement in the light of the above passage.a)Yes. Since the profits are obtained due to the skill and expertise of the individual, he need not pass it on to the principal.b)Yes. If the person had not utilised his skill and expertise, the principal would not have made any profit. So he has no obligation to the principal.c)No. Since the confidence was reposed on this principal, it leads to a fiduciary relationship and any profits made need to be passed on to the principal.d)This would be determined on a case to case basis.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CLAT tests.