conflict of interest
Definition
A conflict of interest happens when someone who is supposed to act in your best interest also has a personal stake in the outcome that could influence their decisions. For example, a financial advisor recommending investments might secretly earn higher commissions from certain funds, meaning their wallet and your wallet are pulling them in different directions.
Example
If you hire a contractor to manage your renovation and that contractor secretly owns the supply company he buys materials from, he has a conflict of interest because he profits from overcharging you on supplies.
Watch Out
Always ask anyone you hire or work with to disclose any financial relationships or personal interests that could affect the advice or decisions they make on your behalf.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.