Abstract

AbstractUnder English law, one can in general, only sue on a contract if one is a party to it. In simple cases, this is not a problem. However, not all cases are simple. Take, for example, a development project. Key contractual documents are the building contract/subcontracts and also the appointments under which the various consultants are engaged. They contain core obligations, where only the developer and/or the main contractor are the benefiting parties. However, other key players, such as a funder, a purchaser or an occupational tenant, will only participate in the development if they too can enforce those promises. Using collateral warranties is the traditional method for achieving this. In this paper, it will be explained how The Contract (Rights of Third Parties) Act 1999 has created an opportunity to abandon the use of contractors' and consultants' warranties by giving non‐parties to a contract the right to enforce its provisions in cases where the contract expressly provides or clearly intends that they should be able to do so. Copyright © 2005 John Wiley & Sons, Ltd.

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