Breach Of Trust Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Breach Of Trust, written in plain English, along with examples of how it is used.
What is Breach Of Trust?
(n) Breach Of Trust is the failure to fulfill the responsibilities entrusted or expected from a person or failure to act in a diligent manner while holding a trust for achieving the objectives of the trust
History and Meaning of Breach Of Trust
Breach of trust refers to the violation of any legal duty which a fiduciary or any other responsible person owes to another individual, corporation, or entity. The term was first used in the 16th century and has been an essential aspect of the legal system since then. The breach can occur in situations where a person manages someone else's assets, property, or money, especially in a case where a relationship of trust, faith, and confidence exists between them.
The use of breach of trust occurs in different aspects of law and is considered part of the wider concept of trust law. In general, the concept is considered a violation of a fiduciary duty, which means the legal obligation of someone in a position of trust to act in the interests of another person or entity. It is a term generally used in civil law jurisdictions and may or may not be a criminal offense.
Examples of Breach Of Trust
- A financial advisor fails to disclose important information about a client's investments, resulting in a significant loss.
- An attorney steals funds from a client's trust account or uses client funds for personal use.
- An executive of a company discloses confidential information to a competing company.
- A trustee fails to distribute trust property to the intended beneficiaries.
Legal Terms Similar to Breach Of Trust
- Fiduciary duty: A legal obligation of one party to act solely in the interest of another party.
- Embezzlement: A type of financial fraud where someone in a position of trust steals or misappropriates money or property.
- Conversion: Occurs when someone unlawfully takes or uses someone's property or funds for their purposes.