Common Contracts
1 similar Collateral Warranty Agreement contracts
Collateral warranty agreement templateCollateral Warranty Agreement • February 8th, 2021
Warranty is an agreement between a consultant or contractor involved in the design and/or construction of a development and a third party, the beneficiary, who acquires an interest in this development. The beneficiary may be a buyer or tenant of each or part of the development, a bank or other company that provides financing for development. The purpose of the warranty agreement is to create a contractual relationship between the beneficiary and the consultant or contractor involved in its design and construction. Under English negligence law, as has evolved over the years, the end user of the property who suffers economic loss due to defects due to negligence by the builder or designer, is unlikely to be able to recover any damages if he sues that builder or designer for negligence. However, by having a warranty agreement between the designer or originator and end-user, this problem is overcome - the beneficiary can sue the designer or builder under the warranty agreement on the groun
