Q&As

Is a main contractor liable to the customer for the fraudulent actions of its sub-contractor in performing sub-contracted services to the customer?

read titleRead full title
Published on LexisPSL on 10/05/2019

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Is a main contractor liable to the customer for the fraudulent actions of its sub-contractor in performing sub-contracted services to the customer?
  • Privity of contract and liability
  • Fraudulent misrepresentation

Privity of contract and liability

Although contractual rights and benefits generally are (subject to express contractual provisions to the contrary) assignable, contractual obligations or burdens are not. However, in certain circumstances, contractual obligations or burdens may be 'vicariously' performed by way of sub-contracting. Sub-contracting is the delegation by one party of some or all of its obligations under a contract between it and a customer to a third party (the sub-contractor) for performance by the sub-contractor.

Where vicarious (ie sub-contracted) performance is permitted, there is no transfer of the contractor’s liability under the main contract to the sub-contractor. The contractor remains liable to the customer under the main contract for the non-performance by the sub-contractor, even where the customer consents to the vicari

Popular documents