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Conversely, this doctrine can also be used defensively (as a shield). An owner may claim that their contractor's workmanship is defective. If the issue was caused by something in the plans or specs, a contractor could avoid potential liability using the Spearin Doctrine.

Last month, we discussed the Spearin doctrine, which establishes that a project owner impliedly warrants that plans and design specifications will be adequate if the owner issues and the contractor complies with the plans and specifications.

The known loss doctrine focuses on the insured's knowledge of a loss prior to the policy inception date, and not whether the insured failed to disclose information that it was required to disclose during the application process.

Under Spearin, the owner is deemed by law to impliedly warrant that the plans and specifications are (1) accurate and (2) suitable for their intended use. An owner breaches the first warranty when the actual condition of the site is not as indicated in the plans and specifications.

Contractor's Consent means a written consent in a form acceptable to Lender executed by each Contactor that has entered into a written Construction Contract with Borrower or its Affiliate for the provision or labor and/or materials to or for the Property.

A typical consent form requires the engineer to agree that the design agreement can be assigned to the lender. The assignment will actually occur at the time the loan is closed; however, the assignment is conditional in the sense that the lender can only assume the design agreement if the owner defaults on the loan.

A legal assignment is transferring an interest from one party, called the assignor, to another, the assignee. An assignment entitles the assignee to the performance of a particular contractual obligation conferring a benefit.

Legal Framework and Importance The legal framework governing consent of assignment varies by jurisdiction but generally requires that all parties to the original contract agree to the transfer. This consent ensures that the assignee can legally assume the rights and responsibilities outlined in the contract.

An assignment of contract is a legal clause that allows for one party of a contract to transfer the rights, obligations, and responsibilities of that contract to another party. The party who is giving away the responsibility of the contract is the assignor and the party receiving is the assignee.