Definition

Noun: - A violation of a legal or ethical duty by someone in a position of trust: Specifically refers to a failure by a trustee, fiduciary, or other trusted party to act according to the duties and standards of loyalty, care, and honesty required by law or equity. This often involves fraud, negligence, or a conflict of interest.

Usage

• This term is primarily used in legal and formal contexts concerning fiduciary relationships, such as between a trustee and beneficiary, a lawyer and client, or a director and corporation.
• It describes a serious failure, not a minor mistake, where the trusted party's actions harm the person or entity that relied on them.

Examples

• The executor's secret sale of the estate's property for personal gain was a clear breach of trust.
• The shareholders sued the board for breach of trust, alleging the directors prioritized their own interests.
• As a lawyer, misusing a client's funds constitutes a breach of trust and can lead to disbarment.

Advanced Usage

• "Action for breach of trust": A formal lawsuit brought against a trustee or fiduciary for failing in their duties.
• "Liable for breach of trust": Describes the legal state of being found responsible for such a violation.

Variants and Related Words

• Breach of fiduciary duty: A very similar legal term often used interchangeably, though it can be broader.
• Fiduciary duty: The obligation itself that, when violated, becomes a breach of trust.
• Trustee: The person who holds the legal title to property for the benefit of another and who must avoid a breach of trust.

Synonyms

• Fiduciary misconduct
• Violation of trust
• Betrayal of trust (more general, less legal)

Related Phrases

• In breach of trust: The state of having committed the violation.
  • The agent was found to be in breach of trust.
• To commit a breach of trust: The act of violating the duty.
  • The manager committed a breach of trust by embezzling funds.

Noun

1. violation (either through fraud or negligence) by a trustee of a duty that equity requires of him