Advice, Liability for - Indemnity if advice relayed to third party
BIFA (2005) Section 13.
Advice and information, in whatever form it may be given, is provided by the Company for the Customer only and the Customer shall not pass such advice or information to any Third Party without the Company’s written agreement . The Customer shall indemnify the Company against all loss and damage suffered as a consequence of any breach of this Condition by the Customer.
CIFFA Section 1
Advice and information that is not related to instructions accepted by the Company is provided gratuitously and without liability. Advice is for the Customer only and is not to be furnished to any other party without prior written consent.
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Peter Jones' Commentary:
BIFA 2005 attempts to deal with the circumstance that a customer, who has received advice from a forwarder, relays that advice to its own customer. A forwarder who agrees to its advice being disseminated in this fashion may be liable to its customer's customer, despite the provisions of this section. If not agreed to, the customer must indemnity the forwarder.
Many conditions include a provision that advice is given gratuitously, and without liability. The BIFA Conditions recognize that there are many services provided where advice is central to the relationship. In those circumstance, the advice cannot reasonably be described as gratuitous.
The CIFFA Conditions provide that advice unrelated to the engagement of the forwarder is gratuitous, and is given without liability should the advice prove incorrect.