When does an individual have a duty of trust?

An individual has a duty of trust primarily when they lead another party to believe that they can be trusted. This concept revolves around establishing a relationship where one party relies on the expertise, integrity, or discretion of another. When trust is built, it inherently creates a fiduciary relationship, which imposes obligations to act in the best interests of the other party, keeping their interests in mind above one's own.

This duty of trust is crucial in various contexts, including professional settings, personal relationships, and business dealings, as it underscores ethical behavior and accountability. This relationship can arise even in the absence of a formal contract, emphasizing the importance of implied trust based on actions and representations.

The other options do not accurately reflect the broader understanding of a duty of trust. Simply sharing confidential information typically involves a duty of confidentiality but does not necessarily create a trust obligation unless there is a relationship established. Limiting the duty of trust to contracted individuals or to financial transactions overlooks situations where trust is established in a variety of interpersonal contexts.