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How to set construction in the Collateral Agreement

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in the recent case of abbey healthcare and simply construct the court of appeals judgment that was handed down on the 21st of june this year answered the following question was the collateral warranty a construction contract within the meaning of section 141 of the housing grants construction and regeneration act 1996. in the tcc at first instance the court had said that it was not section 104 defines a construction contract as an agreement for or in relation to the carrying out of construction operations that term is defined in section 105 by a list of various activities that do or do not meet that definition now the primary significance in abi healthcare of the warranty being in construction contract if ultimately it was was that there would then be a right to adjudicate disputes arising under that contract by virtue of section 108 of the act up to that point the only authoritative guidance on this issue of collateral warranties as construction contracts could be found in the case of

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What is an example of a collateral warranty in construction?

An example of where a collateral warranty comes into play would be; if the work of a specialist sub-contractor is defective, the employer can sue the contractor, who can then seek to recover from the sub-contractor.

What does collateral agreement in place mean?

A collateral agreement transfers all or some of the rights of the owner of personal property (including a life insurance policy) to another party (the assignee) as security for the repayment of an indebtedness.

What is collateral in Blacks law Dictionary?

COLLATERAL CONTRACT Definition Legal Meaning Written or oral agreement associated as a second, or side contract made between the original parties, or between a third party and an original party. This typically occurs before or at the same time of the first or main contract is made.

What is a collateral assignment of construction contract?

This Standard Document assigns to the construction lender as additional security the borrowers interest in construction contracts, including the architects agreement and general contract, plans and specifications, permits, licenses, guaranties, warranties, entitlements, and other development related documents.

What is a collateral promise?

Collateral promise: a secondary promise to a primary transaction, such as a promise made by one person to pay the debts of another if the latter fails to perform; a collateral promise normally must be in writing to be enforceable.

What does it mean for an agreement to be collateral?

A collateral contract is one where the parties to one contract enter into or promise to enter into another contract. Thus, the two contracts are connected and it may be enforced even though it forms no constructive part of the original contract.

What is a collateral event?

Collateral Event means that the unsecured and unsubordinated debt, deposit or letter of credit obligations of Party A carry an assigned rating by SP that is below the Hedge Counterparty Collateral Threshold Rating.

What is a collateral in construction?

NB: In construction, the term collateral warranty refers to an agreement associated with another primary contract providing for a duty of care to be extended by one of the contracting parties to a third party who is not party to the original contract.

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Set construction in the Collateral Agreement