WebFeb 11, 2024 · A collateral warranty is a promise or assertion given by a third party which is ancillary to the main contract. Collateral warranties are a well established concept in construction projects. For example, a … WebSep 9, 2024 · 1. In deciding whether a collateral warranty is deemed to be a “construction contract”, one has to look at the obligations being warranted. If a collateral warranty …
Collateral Warranty Agreement for a Contractor ContractStore
WebThis Collateral Warranty Agreement template is for use where a contractor enters into a direct agreement with a purchaser, tenant or funder of a development. Please note that … In a simple construction project, an employer may contract with a contractor to carry out building works. Those two parties usually have a clear contractual relationship. However, construction projects invariably involve a wide range of parties with an interest in the development (funders, purchasers, tenants for … See more Some collateral warranties can also contain ‘step-in’ rights which effectively allow the beneficiary to step in to the underlying contract … See more Effectively a collateral warranty is a shortened version of the underlying contract and so should reflect the obligations therein. … See more A statutory exception to the doctrine of privity of contract was introduced by the Contracts (Rights of Third Parties) Act 1999 (the Act). The Act allows a third party to enforce the terms of a contract where an express right has … See more This is dependent on the terms of the underlying contract. Providing a collateral warranty increases the potential scope of a provider’s liability, so careful thought should be given to the decision to do so. If so required, a party … See more mount bay ship
Collateral Warranty Definition Legal Glossary LexisNexis
WebJan 4, 2013 · Collateral warranties: an overview. Everyone involved in the construction industry will be aware of the traditional contractual relationships that exist in the basic structure of most construction projects. That is, the employer contracts with the contractor, who in turn contracts with any sub-contractors and/or sub-consultants. WebIn construction law, collateral warranty refers specifically to a contract between a professional consultant, building contractor or sub-contractor and a third party (for … WebJul 6, 2024 · A collateral warranty is usually provided by a party (the warrantor) based on a requirement in the underlying contract. It is common for a collateral warranty to be provided as a warrantor by the construction professionals and consultants, main contractors and sub-contractors with a material design responsibility. heart dealer financial services