Collateral warranties
Published:
22 November 2011
Edited:
6 July 2020
A collateral warranty is a contract which gives a third party collateral, or running side by side, rights in an existing contract entered into by two separate parties. Collateral warranties are used to protect the interests of third parties or subsequent owners. Your obligations and liability may be extended by the use of a collateral warranty, for instance in a franchise project. You should check any collateral warranties with your professional indemnity insurer.
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