The following Construction practice note provides comprehensive and up to date legal information covering:
It is standard practice in construction projects for the contractor, key sub-contractors and consultants (referred to in this Practice Note as warrantors) to provide collateral warranties to various parties, including funders and purchasers (referred to in this Practice Note as beneficiaries). See Practice Note: What are collateral warranties?
The warranty'>collateral warranty creates a direct contractual link between the beneficiary and the warrantor, without which the beneficiary would not have any right to claim from the warrantor in the event that it fails to properly perform its obligations under the building contract, sub-contract or appointment (as appropriate). A collateral warranty will contain an undertaking in respect of the obligations in the underlying contract, as well as dealing with matters such as copyright licences, assignment, professional indemnity insurance, and in some cases will included a step-in rights clause. This Practice Note explains what such step-in rights are, which parties will typically be granted step-in rights in a construction project, and looks at the typical mechanism for activating step-in rights.
As well as collateral warranties, it is also typical to find step-in rights in development agreements (for an example of a step-in clause for a development agreement, see Precedent: Step-in rights clause). Step-in rights are also the key focus of direct agreements such as those provided in PFI/PF2 projects, see Practice Note: Direct agreements in PFI/PF2. This Practice Note
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Express and implied contractual terms distinguishedContractual terms may be either express or implied:•express terms—are terms which are actually recorded in a written contract or openly expressed in an oral contract at the time the contract is made (or there may be a combination of written and oral
What is a res judicata?A res judicata is a decision given by a judge or tribunal with jurisdiction over the cause of action and the parties, which disposes, with finality, of a matter decided so that it cannot be re-litigated by those bound by the judgment, except on appeal.Final judgments by
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies,
There may be times when, rather than assigning the benefit of an agreement to a third party, the original parties wish instead to end their obligations to each other under that agreement and, in effect, recreate it, with the third party stepping into the shoes of one of the original parties. This is
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