Principal liability
Principal liability is a legal concept that defines the responsibility of the consignor, shipper or depositor for certain damages incurred by the carrier, forwarder or warehouse keeper. According to Sections 414, 455 and 468 (3) of the German Commercial Code (HGB), the principal is liable for the consequences of damage caused by his instructions or actions, similar to a guarantee.
The principal’s liability extends to various areas of transportation and logistics. For example, the sender or consignor can be held liable for damage caused by inadequate packaging or labeling of the goods that results in damage during transport. Similarly, the storing party may be liable for damage caused by incorrect storage conditions or improper handling of the goods.
The legal basis for the client’s liability lies in the client’s duty of care, which aims to minimize damage and risks in connection with the transport or storage of goods. By taking reasonable precautions and taking the necessary measures to ensure the safety and integrity of the goods during transportation or storage, the principal can reduce its liability risk.
Principal liability also serves to protect the interests of carriers, freight forwarders and warehouse keepers by providing financial protection for damage caused by the actions or omissions of the principal. This contributes to stability and fairness in the transportation and logistics industry and promotes compliance with quality standards and safety regulations.
Overall, principal liability is an important legal concept in the transportation and logistics sector that clearly defines the responsibilities and obligations of the principal and helps to ensure the smooth and safe transportation of goods and warehouse operations.