The fiduciary concept is a "concept in search of a principle." Despite numerous attempts by commentators and the judiciary to define the basis for the imposition of all fiduciary obligations, it is often said that no universally accepted basis has been developed.

In the quest for a universal basis, it appears that six different theories have emerged. The `undertaking' theory, the `property' theory, the `reliance' theory, the `power' theory, the `vulnerability' theory, and finally the `loyalty' theory.

This essay will consider the proposition as suggested by Dawson J in Hospital Products Ltd v United States Surgical Corporation (Hospital Products) that `The notion underlying all the cases of fiduciary obligation that [is] inherent in the nature of the relationship itself is a position of disadvantage or vulnerability on the part of one of the parties...' In other words, this essay seeks to ascertain whether or not vulnerability is...