What are the obligations of a fiduciary relationship?

Whereas contractual obligations emerge, at least in theory, in relationships characterized by mutual autonomy, fiduciary obligations emerge in relationships of trust and reliance between parties. In Frame v. Smith, 1987 CanLII 74 (SCC), [1987] 2 S.C.R. 99 at p. 136, Wilson J. identified the following hallmarks of a fiduciary relationship: (a) the fiduciary has scope for the exercise of some discretion or power; (b) the fiduciary can unilaterally exercise that power or discretion so as to affect the beneficiary’s legal or practical interests; and (c) the beneficiary is peculiarly vulnerable to or at the mercy of the fiduciary holding the discretion or power.