This situation constitutes a conflict of interest and an obligation of situation. Both X and Y have fiduciary duties, which means they must submit their own interests for the benefit of the duo`s collective interest. By signing an individual contract and taking over all the money, X placed personal interests above the loyalty obligation. Therefore, a court will find that X breached his fiduciary duty. The legal remedy will be here that X holds both the contract and the money in constructive confidence for the duo. Note that X is not punished or denied entirely by the benefit; X and Y receive half a share of the contract and money. An agent is liable if it is proven that he has acquired a profit, benefit or benefit from the relationship through one of three means: The standard of suitability can ultimately create conflicts between a broker and a client. The most obvious conflict must be compensated. According to a fiduciary standard, an investment advisor would be strictly prohibited from buying an investment fund or other investment for a client because he would pay the broker higher fees or commission than an option that would cost the client less – or would earn more for the client. Investment advisors, who are generally subject to royalties, are bound by a fiduciary standard introduced under the Investment Advisers Act of 1940.
They may be regulated by the SEC or by national securities regulators. The law is quite specific in defining what an agent means, and it establishes a duty of loyalty and diligence, which means that the advisor must put his client`s interests above his own. To say that a man is an agent is only the beginning of the analysis; it points the way forward for further investigation. Who is he in trust? What are his obligations as an agent? To what extent has it not met these obligations? And what are the consequences of his deviation from his duty? Secret commissions or bribes are also covered by the non-profit rule.  Bribes are maintained in constructive confidence for the client. The person who took the bribe cannot get it back, since he has committed a crime. Similarly, the agent who received the bribe committed a crime. Trust duties are an aspect of justice, and in accordance with just or maximized principles, justice serves those who have clean hands. Therefore, the bribe is maintained on constructive trust for the sponsor, the only innocent party.
Two parties, the Senior Administrator and the Agent, submitted the draft agreement. The agent should act in the best interests of the principal or beneficiary and manage the assets on their behalf for the duration of the agreement.