Which term describes a person who owes a duty of trust and confidence to another and has the power to act for that person?

• A. Principal
• B. Fiduciary
• C. Fiduciary duty
• D. Common Law

Answer: (B)

The key idea here is the fiduciary relationship. A fiduciary is someone who owes a duty of trust and confidence to another person and has the power to act for that person. This means the fiduciary must act in the other person’s best interests, handle affairs with loyalty, and avoid conflicts of interest. In contexts like agency or advisory relationships, the person who acts for someone else and is trusted with that authority fits this description exactly.

That’s why the term describes the person in question. The other terms don’t fit as well: a principal is the one who authorizes the agent to act, the fiduciary duty is the obligation itself, and common law refers to the body of law governing such duties, not the identity of the person.