Breach of Fiduciary Relationship and Duty of Care

Imagine you hire a trusted friend to help sell your car. You rely on this friend to find the best buyer and handle all the details of the sale. This trust is what we call a “fiduciary relationship,” meaning your friend has a special responsibility to act in your best interest. Duty of Care means your friend must do their job honestly and thoroughly. They need to show your car to all potential buyers and present every offer they receive to you. They shouldn’t ignore any offers just to keep more money for themselves or avoid sharing it with others. Breach of Fiduciary Relationship and Duty of Care occurs if your friend decides not to show you an offer from another buyer because they want to keep all the profit from a buyer they find themselves. By not sharing this offer, your friend is not fulfilling their responsibility to act in your best interest. In real estate, when you hire an agent to sell your home, they have the same obligation. They must show all offers they receive and help you make the best decision, even if it means sharing the commission with another agent. Not doing so would be a breach of their duty to you, as they’re supposed to work for your benefit, not just their own. In summary, a breach happens when someone fails to act in the best interest of the person who has trusted them, not fulfilling their responsibility to handle all offers and work to achieve the best outcome.