Final answer:
The term for a breach of duty by a person in a fiduciary capacity that doesn't involve actual fraudulent intent but provides an advantage to one party is called constructive fraud.
Step-by-step explanation:
The term for a breach of duty by a person in a fiduciary capacity that doesn't involve actual fraudulent intent but provides an advantage to one party is called a constructive fraud.
Constructive fraud occurs when someone acts in a way that breaches their fiduciary duty and gives unfair advantage to one party, even if there was no intention to commit fraud. It is a legal concept used to hold individuals accountable for their actions when they abuse their position of trust.
For example, let's say a financial advisor, who has a fiduciary duty to act in the best interest of their client, invests the client's funds in a risky and speculative investment without proper disclosure or consent. Although the financial advisor may not have had fraudulent intent, their actions provide an advantage to themselves or another party, which constitutes constructive fraud.