Breach of Trust

Definition: A violation of a duty arising from a relationship of trust, such as misuse of entrusted money, authority, or confidential information.

Example

An agent uses entrusted authority for an undisclosed personal benefit contrary to the principal's interests.

Keep the distinction clear

This is more specific than simply failing to keep any promise. A breach of contract and a breach of fiduciary or trust duties can involve different obligations.

Related terms

Fiduciary · Trust Funds · Conversion (Entrusted Money or Property)

Keep studying

Buyer Agreements and Florida Agency: What Changed?

References: Florida Statutes 475.25: discipline and escrow disputes · Florida Statutes 475.278: brokerage relationships and duties

Pronunciation (US): BREECH uv TRUST (capitals show stress)

Pronunciation reference: Merriam-Webster