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Collateral Warranties: The “No Greater Liability” Debate

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Collateral Warranties: The “No Greater Liability” Debate

Collateral Warranties: The “No Greater Liability” Debate

Are ‘no greater liability’ clauses and ‘equivalent rights of defence’ clauses necessary in collateral warranties and third party rights schedules?

Some argue that ‘no greater liability’ clauses and ‘equivalent rights of defence’ don’t need to be expressly included in collateral warranties and third party rights schedules. They believe that their effect may be implied or pulled through from the original contract of a contractor or consultant.

While the courts have not directly addressed this issue, we believe that it is in the interest of all parties to set these clauses out expressly. Click here to find out why.

If you would like further information on the above response or construction law advice, please contact Michael Chilton, or you can give us a call on 0345 070 6000.