Fiduciary Obligations Exam Questions
+ Verified Answers 100% correct,
Update 2026
What harm can occur when a fiduciary gains at the expense of the
principal? -
correct answer ✅⇒When someone has discretion in someone
else's affairs there is scope for abuse
type of abuse? - e.g a director of a company may deliberately
convince shareholders to invest in a company that they themselves
have an interest in
⇒So what's important here is the possibility of the fiduciary's gain
at the principal's expense
With Fiduciary's is the liability strict? -
correct answer ✅Yes - Fiduciary's have very strict obligations that
are forcefully enforced
Why does fiduciary obligations have such strict liability and
remedies? -
correct answer ✅- to ensure that the fiduciary acts altruistically
and negates their own self-interest - Sarah Worthington
, Fiduciary Obligations Exam Questions
+ Verified Answers 100% correct,
Update 2026
- fiduciary law has this deterrent function
- putting limits to restrictions on people's own self-interests
What is altruism? -
correct answer ✅Putting the interests of others (the principle)
before to your own
How does Contract law contrast with Equity in regards to self-
interest? -
correct answer ✅Self-interest is exactly what underpins the idea of
contract. It's a fundamental tenet of liberalism.
This is something that arises particularly in the 19th century as
contract in the common law starts to gain more global prominence
What is the quote Bray v Ford (1896) in regards to human nature? -
correct answer ✅'With human nature being what it is, there is a
danger that a person in a fiduciary position will be swayed by
interest rather than by duty'
+ Verified Answers 100% correct,
Update 2026
What harm can occur when a fiduciary gains at the expense of the
principal? -
correct answer ✅⇒When someone has discretion in someone
else's affairs there is scope for abuse
type of abuse? - e.g a director of a company may deliberately
convince shareholders to invest in a company that they themselves
have an interest in
⇒So what's important here is the possibility of the fiduciary's gain
at the principal's expense
With Fiduciary's is the liability strict? -
correct answer ✅Yes - Fiduciary's have very strict obligations that
are forcefully enforced
Why does fiduciary obligations have such strict liability and
remedies? -
correct answer ✅- to ensure that the fiduciary acts altruistically
and negates their own self-interest - Sarah Worthington
, Fiduciary Obligations Exam Questions
+ Verified Answers 100% correct,
Update 2026
- fiduciary law has this deterrent function
- putting limits to restrictions on people's own self-interests
What is altruism? -
correct answer ✅Putting the interests of others (the principle)
before to your own
How does Contract law contrast with Equity in regards to self-
interest? -
correct answer ✅Self-interest is exactly what underpins the idea of
contract. It's a fundamental tenet of liberalism.
This is something that arises particularly in the 19th century as
contract in the common law starts to gain more global prominence
What is the quote Bray v Ford (1896) in regards to human nature? -
correct answer ✅'With human nature being what it is, there is a
danger that a person in a fiduciary position will be swayed by
interest rather than by duty'
