Legal Definitions - advice

In legal and commercial contexts, advice refers to either formal guidance provided by a professional or a written notification concerning a financial or commercial transaction.

• When used in the sense of guidance, it means a professional opinion, recommendation, or counsel offered to help an individual or entity understand their rights, obligations, or make an informed decision. This is particularly common when a lawyer provides "legal advice" to a client regarding their legal position or a course of action.

• In a commercial or financial sense, advice can also refer to a formal written notice or communication. This type of advice often confirms that a payment has been made, a financial instrument (like a draft) has been issued, or details a specific transaction for record-keeping purposes.

Examples:

• Legal Guidance: A startup company is developing a new mobile application and consults with an intellectual property attorney. The attorney reviews their business model and the app's features, then provides advice on how to best protect their software code, brand name, and user data through patents, trademarks, and privacy policies.

  This illustrates advice as professional guidance, where the attorney's expertise helps the startup navigate complex legal requirements and make strategic decisions to safeguard their assets.

• Remittance Advice: After paying her monthly utility bill online, a customer receives an email from the utility company confirming the payment. This email includes the payment amount, the date of the transaction, and the invoice number it applies to.

  This demonstrates advice in the form of a "remittance advice," which is a formal notification confirming that a sum of money has been sent and received, providing essential details for both the payer's and payee's records.

• Commercial Notification (Letter of Advice): An importer in Canada orders a large quantity of specialty textiles from a supplier in India. Once the textiles are shipped, the Indian supplier sends a formal document to the Canadian importer's bank, informing them that a bill of exchange (a type of payment instruction) has been drawn against the importer for the cost of the shipment, along with details of the goods and shipping manifest.

  This exemplifies advice as a formal notice, often called a "letter of advice," used in international trade to inform a bank or party that a financial instrument, like a draft, has been issued in connection with a commercial transaction.