A fiduciary relationship between an agent and a principal is a legal and ethical relationship where the agent is entrusted with the responsibility to act in the best interests of the principal. The agent, in this case, is someone who is authorized to act on behalf of the principal and make decisions or perform tasks on their behalf.
The fiduciary relationship is based on trust, confidence, and loyalty. The agent is expected to exercise their authority and perform their duties with utmost care, honesty, and loyalty towards the principal. They must prioritize the principal's interests above their own and avoid any conflicts of interest.
The agent has a duty to act in good faith, provide accurate information, and make decisions that are in the best interests of the principal. They must also exercise reasonable skill and diligence in carrying out their responsibilities. This includes keeping the principal informed, maintaining confidentiality, and avoiding any self-dealing or personal gain at the expense of the principal.
The principal, on the other hand, has the right to expect the agent to act in their best interests and to be accountable for their actions. They have the authority to set guidelines, provide instructions, and monitor the agent's performance. The principal also has the right to terminate the fiduciary relationship if they believe the agent is not acting in their best interests.
Overall, the fiduciary relationship between an agent and a principal is a legally binding relationship that requires the agent to act with loyalty, honesty, and care towards the principal, ensuring that their interests are protected and prioritized.