Commentary

131 Assignment of contractual rights

BUILDING AND ENGINEERING vol 5
| Commentary

131 Assignment of contractual rights

| Commentary

131 Assignment of contractual rights

Notwithstanding enactment of the Contracts (Rights of Third Parties) Act 19991, many employers still choose to avoid the uncertainty created by having numerous parties able to enforce terms of the contract and prefer to rely instead on traditional methods of conferring third-party benefits. These methods include assignment by the employer of his own rights under the contract2 (generally after completion of the works), and compelling the contractor to enter into separate collateral warranties with third parties who have an interest in the development3.

As a general principle, a contracting party may validly assign his rights under

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