What do special remedies for breach of fiduciary duties include?

The option identifying the imposition of a constructive trust on the agent's property as a special remedy for breaches of fiduciary duties is accurate. A constructive trust is a remedy imposed by a court to prevent unjust enrichment when an agent has acted improperly or in violation of their fiduciary duties. If an agent wrongfully benefits from their position or misappropriates funds or property, the court can impose a constructive trust on the property acquired through the breach. This means that the agent must hold the property for the benefit of the principal, effectively restoring the benefits derived from the breach back to the principal.

Such remedies underscore the nature of fiduciary relationships, which are built on trust and loyalty. When that trust is violated, the law provides mechanisms, like constructive trusts, to rectify the situation and deter future wrongdoings, ensuring that agents fulfill their obligations with integrity.

In contrast, while termination of the agency relationship can be a consequence of a breach, it is not specifically categorized as a remedy but rather a step in response to problematic conduct. The reduction of the agent's responsibilities does not serve as a remedy for breaches of fiduciary duties. Automatic forfeiture of contract would also not align with common remedies available, as any contractual consequences typically result from legal