Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
What is a fiduciary relationship? -
correct answer ✅A relationship where one party acts for or on
behalf of another in circumstances that give rise to trust and
confidence.
What are the two fundamental duties of a fiduciary as per Lord
Herschell in Bray v Ford? -
correct answer ✅1. No conflict of interest 2. No profit from the
fiduciary relationship.
What does the duty of loyalty entail for a fiduciary? -
correct answer ✅The fiduciary must act with single-minded loyalty
to the principal, prioritizing the principal's interests over their own.
What is the significance of fiduciary duties in commercial
relationships? -
correct answer ✅Fiduciary duties impose onerous responsibilities
on fiduciaries and significant remedies if breached, extending
beyond traditional trustees.
,Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
Who is considered a principal in a fiduciary relationship? -
correct answer ✅The person to whom fiduciary duties are owed,
such as a client or beneficiary.
What remedies are available for breach of fiduciary duty? -
correct answer ✅Remedies include rescission of transactions,
disgorgement of profits, and compensation for losses suffered by
the principal.
What is the principle of disgorgement in fiduciary duties? -
correct answer ✅The fiduciary must return any profits made from
breaching their duty to the principal.
What is the difference between a fiduciary and a trustee? -
correct answer ✅A fiduciary acts on behalf of another in a
relationship of trust, while a trustee specifically manages trust
property for beneficiaries.
What must a fiduciary do if they have multiple principals? -
correct answer ✅They must avoid conflicts between their duties to
each principal.
,Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
What is an ad hoc fiduciary relationship? -
correct answer ✅A relationship that may not fall within recognized
categories but can still be characterized as fiduciary if it involves
managing another's affairs.
What is the role of discretion in determining fiduciary
relationships? -
correct answer ✅Discretion in managing another's affairs is a key
hallmark of a fiduciary relationship.
What case established that not all agents owe fiduciary duties? -
correct answer ✅De Bussche v Alt (1878).
What does the case of Prince Eze v Conway (2019) illustrate about
fiduciary duties? -
correct answer ✅It shows that a person facilitating a contract may
not owe fiduciary duties if they are not considered a trusted
adviser.
, Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
What is the significance of the case Tang Man Sit v Capacious
Investments Ltd (1996)? -
correct answer ✅It highlights that a principal cannot recover both
compensatory and disgorgement remedies, avoiding double
recovery.
What is the nature of the relationship between a trustee and
beneficiary? -
correct answer ✅It is a recognized fiduciary relationship where the
trustee manages property for the benefit of the beneficiary.
What is a constructive trustee? -
correct answer ✅A person who is not a trustee by choice but is
treated as one due to their involvement with trust property.
Can a bare trustee be considered a fiduciary? -
correct answer ✅It is debated; some argue they lack discretionary
power, while others assert they should be accountable to
beneficiaries.
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
What is a fiduciary relationship? -
correct answer ✅A relationship where one party acts for or on
behalf of another in circumstances that give rise to trust and
confidence.
What are the two fundamental duties of a fiduciary as per Lord
Herschell in Bray v Ford? -
correct answer ✅1. No conflict of interest 2. No profit from the
fiduciary relationship.
What does the duty of loyalty entail for a fiduciary? -
correct answer ✅The fiduciary must act with single-minded loyalty
to the principal, prioritizing the principal's interests over their own.
What is the significance of fiduciary duties in commercial
relationships? -
correct answer ✅Fiduciary duties impose onerous responsibilities
on fiduciaries and significant remedies if breached, extending
beyond traditional trustees.
,Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
Who is considered a principal in a fiduciary relationship? -
correct answer ✅The person to whom fiduciary duties are owed,
such as a client or beneficiary.
What remedies are available for breach of fiduciary duty? -
correct answer ✅Remedies include rescission of transactions,
disgorgement of profits, and compensation for losses suffered by
the principal.
What is the principle of disgorgement in fiduciary duties? -
correct answer ✅The fiduciary must return any profits made from
breaching their duty to the principal.
What is the difference between a fiduciary and a trustee? -
correct answer ✅A fiduciary acts on behalf of another in a
relationship of trust, while a trustee specifically manages trust
property for beneficiaries.
What must a fiduciary do if they have multiple principals? -
correct answer ✅They must avoid conflicts between their duties to
each principal.
,Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
What is an ad hoc fiduciary relationship? -
correct answer ✅A relationship that may not fall within recognized
categories but can still be characterized as fiduciary if it involves
managing another's affairs.
What is the role of discretion in determining fiduciary
relationships? -
correct answer ✅Discretion in managing another's affairs is a key
hallmark of a fiduciary relationship.
What case established that not all agents owe fiduciary duties? -
correct answer ✅De Bussche v Alt (1878).
What does the case of Prince Eze v Conway (2019) illustrate about
fiduciary duties? -
correct answer ✅It shows that a person facilitating a contract may
not owe fiduciary duties if they are not considered a trusted
adviser.
, Fiduciary Duties: Principles, Rules, and
Commercial Contexts Exam Questions +
Verified Answers 100% correct, Update
2026
What is the significance of the case Tang Man Sit v Capacious
Investments Ltd (1996)? -
correct answer ✅It highlights that a principal cannot recover both
compensatory and disgorgement remedies, avoiding double
recovery.
What is the nature of the relationship between a trustee and
beneficiary? -
correct answer ✅It is a recognized fiduciary relationship where the
trustee manages property for the benefit of the beneficiary.
What is a constructive trustee? -
correct answer ✅A person who is not a trustee by choice but is
treated as one due to their involvement with trust property.
Can a bare trustee be considered a fiduciary? -
correct answer ✅It is debated; some argue they lack discretionary
power, while others assert they should be accountable to
beneficiaries.
