The following Construction Q&A produced in partnership with David Sawtell of 39 Essex Chambers provides comprehensive and up to date legal information covering:
A collateral warranty is an agreement that is ancillary to the primary contract. The purpose of a collateral warranty is to ensure that a party that would not otherwise be in a direct contractual nexus with the entity that is carrying out works (such as, for example, design works or building works) does have a direct contractual claim without having to rely on the Contracts (Rights of Third Parties) Act 1999. They became more prominent in the construction industry following the rejection of the approach to tortious liability in Anns v Merton London Borough Council in D&F Estates v Church Commissioners and Murphy v Brentwood District Council, which made it much more difficult to bring a claim in negligence for defective building work. For more information, see Collateral warranties—overview.
The question does not specify the form of contract in the primary contract or if a standard form collateral warranty is being used. There are a number of standard form collateral warranties but it is not unusual for parties to enter into bespoke collateral warranties. They may be requested by the ultimate end user or occupier, such as the freehold purchaser or tenant, or even by a lender. Additionally, an employer may seek collateral
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
MedcoSTOP PRESS: A new RTA small claims protocol for whiplash claims comes into effect for accidents occurring on or after 31 May 2021. The small claims track limit for personal injury claims arising from an RTA is increased to £5000 in respect of general damages for pain, suffering and loss of
What is a public authority?There is no single, universal answer to the question whether a particular organisation is treated, in law, as a public authority.Rather, on one hand the courts have developed case law on which bodies are subject to administrative law through the judicial review procedure;
What is a statutory declaration of solvency, and what happens if a false declaration of solvency is madeStatutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For more information, see Practice Note: What is a
Voluntary manslaughterVoluntary manslaughterVoluntary manslaughter consists of those killings which would be murder (because the accused has the relevant mental element for murder) but which are reduced to manslaughter because of one of the three special defences (loss of control, diminished
0330 161 1234