The principle of fiduciary relationship is incorporated in the Indian Trusts Act, 1882 in
Section 88 of the Indian Trusts Act, 1882 ('Advantage gained by fiduciary') incorporates the equitable principle of fiduciary relationship under Chapter IX ('Of Certain…
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The principle of fiduciary relationship is incorporated in the Indian Trusts Act, 1882 in
Answer and explanation
Correct answer D
Section 88 of the Indian Trusts Act, 1882 ('Advantage gained by fiduciary') incorporates the equitable principle of fiduciary relationship under Chapter IX ('Of Certain Obligations in the Nature of Trusts'). It provides that where a trustee, executor, partner, agent, director of a company, legal adviser, or other person bound in a fiduciary character to protect the interests of another person, by availing himself of his character, gains for himself any pecuniary advantage, or where he enters into any dealings under circumstances in which his own interests are, or may be, adverse to those of such other person and thereby gains a pecuniary advantage, he must hold for the benefit of such other person the advantage so gained.
Option feedback
Option A
Incorrect because Section 80 of the Indian Trusts Act, 1882 is the general introductory provision of Chapter IX stating when an obligation in the nature of a trust is created.
Option B
Incorrect because Section 83 of the Indian Trusts Act, 1882 deals with a resulting obligation where a trust is incapable of being executed or is completely executed without exhausting the trust-property.
Option C
Incorrect because Section 86 of the Indian Trusts Act, 1882 deals with property transferred pursuant to a rescindable contract induced by fraud or mistake.
Option D
Correct because Section 88 of the Indian Trusts Act, 1882 ('Advantage gained by fiduciary') expressly incorporates the principle of fiduciary relationship, providing that where a trustee, executor, partner, agent, director of a company, legal adviser, or other person bound in a fiduciary character to protect the interests of another person gains any pecuniary advantage by availing himself of his character, he must hold the advantage for the benefit of that other person.
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