What constitutes a breach of fiduciary duty?

A breach of fiduciary duty arises when an agent fails to act in the best interests of their principal, placing their own interests above those of the principal. This is fundamental to the agency relationship, which is built on trust and loyalty. An agent is expected to prioritize the principal's needs and benefits, ensuring that any actions taken are aligned with the goals and well-being of the principal.

In this context, when an agent acts in self-interest at the expense of the principal's interests, they violate the fundamental principles of fiduciary duty. This behavior undermines the trust that is essential to the agency relationship and can lead to significant consequences for both the principal and the agent. Such actions could include misappropriating funds, engaging in self-dealing, or any other acts where the agent gains personally while harming the principal's position.

The other options, while they may involve issues of professionalism, communication, or operational performance, do not directly address the core issue of fiduciary responsibility. Miscommunication, failing to complete transactions on time, and personal record-keeping may reflect poor practice but do not necessarily breach the fundamental obligation of loyalty and care that defines fiduciary duty.