Conflict Of Interest Legal Meaning and Definition

Here is a simplified definition of the legal term Conflict Of Interest.

Conflict Of Interest (noun): This legal term describes a situation where an individual's personal interests could potentially interfere with, or be in conflict with, the responsibilities of their professional role or duty. These personal interests could be direct (like owning a majority of shares in a company) or even indirect (like favoritism towards family or friends), and they may jeopardize the trust expected in their professional position. An example could be when a lawyer, who is a major shareholder in a company, is asked to represent a client filing a case against that same company. He is faced with a conflict of interest between his professional duty to the client and his personal gain from the company.