Final answer:
A fiduciary relationship is a legal relationship in which one party places trust, confidence, and reliance in and is influenced by another who has a duty to act for the benefit of the first party.
Step-by-step explanation:
A fiduciary relationship is a legal relationship in which one party places trust, confidence, and reliance in and is influenced by another who has a duty to act for the benefit of the first party. This duty of loyalty and good faith is the basis of a fiduciary relationship.
For example, in a business partnership, the partners owe each other fiduciary duties. They have to act in the best interest of the partnership and avoid any conflicts of interest that could harm the partnership.
A fiduciary relationship can also exist between a client and their attorney. The attorney has a duty to act in their client's best interest, maintain confidentiality, and avoid any conflicts of interest.