What describes a breach of fiduciary duty?

A breach of fiduciary duty occurs when a fiduciary, who is entrusted with the responsibility to act in the best interest of another party, acts contrary to that obligation. This means that the fiduciary prioritizes their own interests, engages in self-dealing, or fails to act loyally to the person or entity they are supposed to represent.

In this context, identifying an act by a fiduciary against their interest obligation effectively captures the essence of what constitutes a breach. This can involve misusing information or assets for personal gain or failing to disclose conflicts of interest. Hence, this option directly correlates to the violation of the trust that is fundamental in fiduciary relationships.

Meanwhile, other options relate to obligations and responsibilities but do not accurately describe a breach of fiduciary duty. A failure to comply with contract obligations primarily pertains to contractual relationships rather than the fiduciary nature of a relationship. Providing incorrect advice to clients can be a negligence issue rather than a fiduciary breach unless it involves a breach of trust. Exceeding terms of an agreement with a partner concerns contractual obligations rather than the specific trust-based duties inherent in a fiduciary relationship.