What is the scope of fiduciary duties in business transactions?

Fiduciary duties are rules that apply to people and entities that owe a special duty of loyalty to another person or entity. In Washington, fiduciary duties arise in the context of business transactions. These duties generally require that a fiduciary act in good faith and with the utmost care, fidelity, and loyalty; use reasonable judgment; and not take actions that are contrary to the interests of the other party. More specifically, the scope of fiduciary duties in business transactions can encompass a variety of duties, including duties of care and loyalty, duties to communicate openly and honestly, and duties to disclose relevant information. The duty of care requires that the fiduciary act prudently, use care, skill and caution in making decisions, and act in the best interests of the other party. The duty of loyalty requires that the fiduciary act solely in the interests of the other party, avoid conflicts of interest, and act in good faith. The duty to communicate openly and honestly requires that the fiduciary provide full and complete disclosure of all relevant facts, as well as timely communication of any changes in the circumstances that could affect the relationship. The duty to disclose requires that the fiduciary disclose all relevant material facts that could influence the other party’s decision-making. Fiduciary duties are a cornerstone of business transactions in Washington. These duties require that a fiduciary act in a manner that puts the interests of the other party first, and ensure that business transactions are conducted in a fair and transparent manner.

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What is the scope of fiduciary duties in business transactions?

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