Question

Susan is a partner of Andrusian Consulting, a consulting partnership. Susan agrees with Mimms Company that Andrusian will provide management consulting services for $75,000 to Mimms, if Mimms agrees to pay Susan $5,000 personally. What fiduciary duty will Susan breach, if Mimms pays her $5,000?

Answer 1

Answer: duty not to profit secretly

Explanation: Fiduciary duty could be explained as a legal binding or obligation on an individual, partner or employee who is expected to act in the best interest of another. Fiduciary duty requires transparency and honesty which in most cases is usually attached to financial openness in transactions between clients and service providers. Fiduciary obligation requires that the representative or partner of the service provider deals transparently with the client especially in the best interest of other partners or organization.

If Susan agrees to take Mimms payment, duty not to make secret profit will be breached as the payment is without the consent of Andrusian consulting