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Collateral warranties essentially bridge the contractual gap between parties upstream and downstream of a middle party, such as employers and sub-contractors separated by the contractor, or funders and contractors separated by the employer.

A collateral warranty creates a contractual link between the third party and the contractor or professional consultant. A collateral warranty is a contract that sits alongside the underlying contract, such as a building contract or consultant appointment, and grants rights to a third party which can be sued upon.

Collateral warranties therefore create direct contractual relationships between parties that would not otherwise exist. A typical example would be where an architect of a new office development owes a duty of care to an occupier of the development in so far as any subsequent defects which may arise are concerned.

A collateral warranty creates a contractual link between the third party and the contractor or professional consultant. A collateral warranty is a contract that sits alongside the underlying contract, such as a building contract or consultant appointment, and grants rights to a third party which can be sued upon.

A workmanship warranty is a legally binding agreement between a contractor and a client that guarantees the quality of the contractor's work. It spells out the duration of the warranty, what is covered, and what is not.

A collateral warranty is a separate promise made to a client or third party (the beneficiary) by a contractor or subcontractor (the warrantor) that they will perform their contractual obligations. The warranty is therefore said to be 'collateral' as it sits alongside the relevant contract.

What is a Collateral Warranty? Collateral warranties are supporting agreements to primary contracts and extend a contractor's or professional's liability to a third party beneficiary who is not party to the primary contract.

The Subcontractor warrants that it will provide the Subcontract Work free of any defects, faults or omissions and that it will, at its own cost, promptly rectify any defects, faults or omissions in the Subcontract Work.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232