A breach of any duty imposed on a trustee is termed as breach of trust. Where the trustee commits a breach of trust, he is liable to make good the loss, which the trust property or the beneficiary has thereby sustained.

However, the trustee is not liable if the beneficiary has by fraud induced the trustee to commit the breach or the beneficiary being competent to do so, has himself, without coercion or undue influence, concurred in the breach, or subsequently acquiesced therein with full knowledge of facts of the case and of his rights as against the trustee.

Again, a trustee is not liable for the breach of trust committed by his predecessor or his co-trustee if he has himself exercised due care and diligence requisite of a man of ordinary prudence and has not facilitated or connived the breach of trust.