RLRELATIONSHIP LINE · LAW STATION

DUTY

A duty is a legal obligation owed by one person to another, the breach of which gives rise to liability. In Hohfeldian analysis, a duty is the correlative of a right: wherever one person has a right, another has a corresponding duty. Duties may be imposed by contract, tort law, statute, or equity. A fiduciary duty is among the most demanding — it requires the fiduciary to act solely in the interest of the beneficiary.

OBLIGATIONMORAL OBLIGATIONRIGHTLIABILITY
WHAT IS THE THING INSIDE THE DUTY?
LEVEL 1 — STREET LEVEL
STREET LEVEL

A duty is a legal obligation — something the law requires you to do or refrain from doing. Duties arise from contracts, statutes, relationships, and sometimes just from being in the world with other people. A duty is always owed to someone.

SUBWAY VERSION

The law says you must. Or you must not. And someone can hold you to it.

WHO PUT IT THERE?
WHAT IS THE THING?
WHO HOLDS OR CONTROLS WHAT?
WHO CAN DO WHAT?
WHO BENEFITS?
WHAT MADE ANY OF THAT LEGALLY EFFECTIVE?
LEVEL 2 — MAP THE RELATIONSHIP

CONNECTED DOES NOT MEAN IDENTICAL.

DON'T MERGE THESE
DUTYOBLIGATION

Obligation is the broader term. A duty is a specific legal obligation owed to an identifiable person or class.

DUTYMORAL OBLIGATION

Moral obligations may not be legally enforceable. A legal duty is enforceable in court. The two may overlap — but they are not the same.

DUTYRIGHT

A duty and a right are correlatives — wherever one exists, the other does too. But they belong to different parties. The duty-bearer must perform; the right-holder can demand performance. They are two sides of the same legal relationship.

DUTYLIABILITY

A duty is the obligation. Liability is the consequence of breaching it. Having a duty does not mean you have breached it. Liability arises only when a duty is breached and the breach causes cognizable harm.

SCI-FINANCE INTERCHANGE
LEVEL 3 — INSPECT THE THING

Sci-Finance analytical terminology. Not statutory or conventional legal terminology.

REAL PIPS
P — PARTIES
Who are the legally relevant people or entities?

The duty-bearer (the person obligated) and the person to whom the duty is owed (the right-holder). A duty is always relational — it runs from one person to another. A duty owed to the public generally is different from a duty owed to a specific person. The identity of the right-holder determines who can enforce the duty.

I — INTENTIONS
What relationship did they intend to establish?

Some duties arise from voluntary undertakings — a contract, a promise, an assumption of a fiduciary role. Others are imposed by law regardless of intent — the duty not to commit a tort, the duty of a parent to support a child, the duty of a trustee once they accept the role. The source of the duty determines whether intent is relevant.

P — PURPOSE
What is the arrangement supposed to accomplish?

Duties serve to protect the interests of the right-holder. A contractual duty protects the promisee's expectation interest. A tort duty protects the plaintiff's interest in bodily integrity, property, or economic interests. A fiduciary duty protects the beneficiary's interest in the fiduciary's loyalty and care. The purpose of the duty shapes its content and the remedy for its breach.

S — SUBJECT MATTER
What property, right, interest, or obligation is actually involved?

The subject matter of a duty is the specific act or omission required. A duty to pay money is different from a duty to perform a service. A duty of care requires reasonable conduct; a duty of loyalty requires undivided allegiance. The scope of the duty — what it requires, to whom it is owed, and when it arises — must be determined before asking whether it was breached.

THINGS INSIDE THIS THING
fiduciary dutyduty of careduty of loyaltystatutory duty
LAW OF PROXIMITY

Things placed near one another may have a meaningful relationship without becoming the same Thing.

A beneficiary near property is not necessarily its titleholder.

A trustee near a beneficiary is not necessarily acting in the beneficiary's capacity.

A document near an asset does not itself prove conveyance of that asset.

A person appearing beside an institution does not thereby acquire that institution's authority.

FIRST ESTABLISH THE RELATIONSHIP. THEN DETERMINE ITS CONSEQUENCES.
CAPACITY & AUTHORITY
PERSON
CAPACITY
SOURCE OF AUTHORITY
AUTHORIZED ACT
RECORD
CONSEQUENCE

The same natural person may occupy more than one capacity. Authority must be traced to the capacity relevant to the particular act.

Contracting party
CAPACITY

Promisor — person who has undertaken a contractual obligation

SOURCE OF AUTHORITY

Contract; consideration; mutual assent

AUTHORIZED ACT

Perform the promised act; failure to perform is breach, giving rise to damages

Fiduciary
CAPACITY

Person in a position of trust and confidence

SOURCE OF AUTHORITY

Fiduciary relationship (trust, agency, corporate office, partnership, or equity-recognized circumstance)

AUTHORIZED ACT

Act solely in the interest of the beneficiary; duties of loyalty, care, and impartiality; breach gives rise to equitable remedies including disgorgement and surcharge

Tortfeasor (potential)
CAPACITY

Person who owes a duty of care to foreseeable plaintiffs

SOURCE OF AUTHORITY

Common law negligence; statute; special relationship

AUTHORIZED ACT

Exercise reasonable care to avoid causing foreseeable harm; failure is negligence, giving rise to liability for damages

WHAT CHANGED?

Do not stop because a document exists. Ask what legally or economically changed.

?Did title change?
?Did possession change?
?Did authority change?
?Did a beneficial interest arise or change?
?Did an obligation arise?
?Was anything actually conveyed?

Before a duty arises: the potential duty-bearer has no legal obligation toward the potential right-holder. After a duty arises: the duty-bearer must perform or refrain from acting as required. Failure to perform is a breach. Breach, combined with causation and harm, gives rise to liability. The nature of the remedy depends on the source of the duty: contract breach gives rise to damages; tort breach gives rise to compensatory and sometimes punitive damages; fiduciary breach gives rise to equitable remedies including disgorgement of profits, surcharge, and removal.

EXAMPLE
NEW YORK HYPOTHETICAL

Nathaniel is a financial advisor. He manages investment accounts for his clients. He owes each client a fiduciary duty — a duty of loyalty and a duty of care. He cannot put his own interests ahead of his clients'. He cannot recommend investments that benefit him at his clients' expense. He cannot fail to disclose conflicts of interest. If he does any of these things, he has breached his fiduciary duty. His clients can sue him for the losses caused by the breach — and may be able to recover the profits he made from the conflict, even if they suffered no loss. The duty ran from Nathaniel to each client individually. It was not a duty to the public generally.

This hypothetical illustrates the questions a reader should investigate. It does not provide individualized legal advice or jurisdiction-specific legal conclusions.

LAW LEVEL

A duty is a legal obligation owed by one person to another, the breach of which gives rise to liability. In Hohfeldian analysis, a duty is the correlative of a right: wherever one person has a right, another has a corresponding duty. Duties may be imposed by contract, tort law, statute, or equity. A fiduciary duty is among the most demanding — it requires the fiduciary to act solely in the interest of the beneficiary.

JURISDICTION & SCOPEGeneral U.S. common law and equity. The scope of specific duties — particularly the duty of care in negligence — varies significantly by jurisdiction, context, and the relationship between the parties. Fiduciary duty standards vary by the type of fiduciary relationship and applicable state law.
PRIMARY SOURCES

Citations are provided for reference only. The Institute does not fabricate citations, cases, statutes, quotations, or URLs. If verified primary-source material has not been supplied, the entry shows SOURCE REVIEW PENDING.

restatement
Restatement (Second) of Torts § 4 (1965)
Definition of duty in tort law; duty as a legal obligation to conform to a standard of conduct
restatement
Restatement (Third) of Agency §§ 8.01–8.12 (2006)
Agent's duties to principal: duty of loyalty, duty of care, duty to act within authority
restatement
Restatement (Third) of Trusts §§ 70–79 (2007)
Trustee's duties: loyalty, prudence, impartiality, duty to inform and account
treatise
Hohfeld, Fundamental Legal Conceptions (1919)
Duty as the correlative of right in Hohfeldian jural relations analysis
LAST REVIEWED
2026-09
PRIMARY SOURCE
Restatement (Second) of Torts § 4 (1965); Restatement (Third) of Agency § 8.01 (2006)
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