What constitutes a fiduciary relationship?

A party becomes a fiduciary where it, acting pursuant to statute, agreement or unilateral undertaking, has an obligation to act for the benefit of another and that obligation carries with it a discretionary power. The following factors assist in recognizing whether a fiduciary relationship exists in a particular set of circumstances: 1. The scope for the exercise of some discretion or power; 2. That power or discretion can be exercised unilaterally so as to affect the beneficiary's legal or practical interests; and 3. A peculiar vulnerability to the exercise of that discretion or power. Hodgkinson v. Simms, supra, at p. 408.