Which type of relationship includes duties such as confidentiality and loyalty?

The correct answer is that a fiduciary relationship includes duties such as confidentiality and loyalty. In this type of relationship, one party (the fiduciary) is entrusted to act on behalf of another party (the principal) with a high level of trust and responsibility. The fiduciary must prioritize the interests of the principal above their own, which is why confidentiality and loyalty are key aspects of this relationship.

Confidentiality ensures that any sensitive information shared by the principal is kept private and not disclosed to unauthorized parties, which is critical in maintaining trust. Loyalty demands that the fiduciary avoids any conflicts of interest and fully commits to serving the principal's best interests.

In contrast, transactional relationships typically lack such in-depth obligations, as they are more about completing a specific exchange rather than fostering a loyal, trust-based interaction. Agency relationships may involve some fiduciary duties, but not all agency relationships carry the same depth of obligation as fiduciary relationships. Similarly, sub-agency arises within agency relationships and also does not encompass the full spectrum of fiduciary duties. Thus, fiduciary relationships are uniquely defined by these essential duties.