No Further Inquiry Rule

{
  "id": "MLC-T-LAW-003409",
  "term": "No Further Inquiry Rule",
  "field": "Law",
  "definition": "A rule of trust law under which a transaction in which the trustee has a conflict of interest, such as buying trust property for personal use, is voidable by a beneficiary without any inquiry into whether the price was fair or the trustee acted in good faith. It enforces the duty of loyalty, so the beneficiary need not prove harm. Exceptions apply when the trust instrument authorizes the transaction, the beneficiaries consent after full disclosure, or a court approves it in advance.",
  "url": "https://mlchart.com/terminology/law/no-further-inquiry-rule/"
}