Future purchasers and tenants - Revision history

Designing Buildings at 06:40, 14 December 2020

2020-12-14T06:40:44Z

← Older revision		Revision as of 06:40, 14 December 2020
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	To help develop this article, click 'Edit this article' above.		To help develop this article, click 'Edit this article' above.

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	The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against latent defects. It is unlikely that subsequent purchasers or tenants will have such an opportunity, unless they fall within the scope of the Contracts (Rights of Third Parties) Act 1999, and they will be (adopting the terminology of the rule of privity of contract) strangers to the original contractual arrangements with no remedies in contract against the parties responsible for the design and construction of the building.		The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against latent defects. It is unlikely that subsequent purchasers or tenants will have such an opportunity, unless they fall within the scope of the Contracts (Rights of Third Parties) Act 1999, and they will be (adopting the terminology of the rule of privity of contract) strangers to the original contractual arrangements with no remedies in contract against the parties responsible for the design and construction of the building.

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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Assignment.
−	*Assignment of choses in action.
−	*Breach of contract.
−	*Collateral warranty.
−	*Contract.
−	*Latent defects.
−	*Novation.
−	*Privity of contract.
−	*The Contracts (Rights of Third Parties) Act.

−	[[Category:Articles_needing_more_work]]	+	* Assignment.
−	[[Category:~~Contracts_/_payment~~]]	+	* Assignment of choses in action.
−	[[Category:~~Other_legislation~~]] [[Category:~~DCN_Legislation~~]]	+	* Breach of contract.
−	[[Category:Property_law]]	+	* Collateral warranty.
		+	* Contract.
		+	* Latent defects.
		+	* Novation.
		+	* Privity of contract.
		+	* The Contracts (Rights of Third Parties) Act.
		+
		+	[[Category:Articles_needing_more_work]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:Other_legislation]] [[Category:Property_law]] [[Category:Contracts_/_payment]]

Designing Buildings at 08:10, 3 December 2013

2013-12-03T08:10:18Z

← Older revision		Revision as of 08:10, 3 December 2013
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−	To help develop this article, click 'Edit' above.	+	To help develop this article, click 'Edit this article' above.

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	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]
	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]
−	[[Category:Other_legislation]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]]
	[[Category:Property_law]]		[[Category:Property_law]]

Designing Buildings at 11:02, 1 October 2013

2013-10-01T11:02:35Z

← Older revision		Revision as of 11:02, 1 October 2013
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	*Latent defects.		*Latent defects.
	*Novation.		*Novation.
		+	*Privity of contract.
	*The Contracts (Rights of Third Parties) Act.		*The Contracts (Rights of Third Parties) Act.

Designing Buildings at 11:24, 27 August 2013

2013-08-27T11:24:58Z

← Older revision		Revision as of 11:24, 27 August 2013
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	The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against latent defects. It is unlikely that subsequent purchasers or tenants will have such an opportunity, unless they fall within the scope of the Contracts (Rights of Third Parties) Act 1999, and they will be (adopting the terminology of the rule of privity of contract) strangers to the original contractual arrangements with no remedies in contract against the parties responsible for the design and construction of the building.		The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against latent defects. It is unlikely that subsequent purchasers or tenants will have such an opportunity, unless they fall within the scope of the Contracts (Rights of Third Parties) Act 1999, and they will be (adopting the terminology of the rule of privity of contract) strangers to the original contractual arrangements with no remedies in contract against the parties responsible for the design and construction of the building.

−	The courts have often said in such circumstances that the law of contract provides for a chain of indemnity connecting the ultimate user with the original producer: for example D is the ultimate user or consumer who purchased from C the retailer, C having purchased from B the wholesaler and B having purchased from A the manufacturer. D can sue C for breach of contract but not B or A. However, if C is sued by D, then C will have a right of indemnity against B who in turn has a right of indemnity against A, creating 'the chain of indemnity' that links the manufacturer to the ultimate user.	+	The courts have often said in such circumstances that the law of contract provides for a chain of indemnity connecting the ultimate user with the original producer: for example D is the ultimate user or consumer who purchased from C the retailer, C having purchased from B the wholesaler and B having purchased from A the manufacturer. D can sue C for breach of contract but not B or A. However, if C is sued by D, then C will have a right of indemnity against B who in turn has a right of indemnity against A, creating 'the chain of indemnity' that links the manufacturer to the ultimate user.

−	Unfortunately, the strength of a chain of indemnity is only as great as its weakest link. If C the retailer becomes insolvent a critical link in the chain between D and A will have been broken. Further, a purchaser of a freehold building is faced with the difficulty of the principle of ‘caveat emptor’ (buyer beware) and the tenant of a leasehold building with the difficulty of full repairing covenants in the lease.	+	Unfortunately, the strength of a chain of indemnity is only as great as its weakest link. If C the retailer becomes insolvent a critical link in the chain between D and A will have been broken. Further, a purchaser of a freehold building is faced with the difficulty of the principle of ‘caveat emptor’ (buyer beware) and the tenant of a leasehold building with the difficulty of full repairing covenants in the lease.

	The future purchaser or tenant must rely on derivative contractual rights. Such rights arise by assignment, which is a unilateral act, or by novation that is synallagmatic (each party is bound to provide something to the other party – see Essentials of a contract).		The future purchaser or tenant must rely on derivative contractual rights. Such rights arise by assignment, which is a unilateral act, or by novation that is synallagmatic (each party is bound to provide something to the other party – see Essentials of a contract).
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	*Assignment.		*Assignment.
	*Assignment of choses in action.		*Assignment of choses in action.
		+	*Breach of contract.
	*Collateral warranty.		*Collateral warranty.
	*Contract.		*Contract.
	*Latent defects.		*Latent defects.
	*Novation.		*Novation.
		+	*The Contracts (Rights of Third Parties) Act.
		+
		+	[[Category:Articles_needing_more_work]]
		+	[[Category:Contracts_/_payment]]
		+	[[Category:Other_legislation]]
		+	[[Category:Property_law]]

Designing Buildings: Created page with " The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against..."

2013-08-27T11:23:25Z

Created page with " The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against..."

New page

The original developer and often the first purchaser or tenant of a property will have an opportunity to enter into direct contractual arrangements to protect themselves against latent defects. It is unlikely that subsequent purchasers or tenants will have such an opportunity, unless they fall within the scope of the Contracts (Rights of Third Parties) Act 1999, and they will be (adopting the terminology of the rule of privity of contract) strangers to the original contractual arrangements with no remedies in contract against the parties responsible for the design and construction of the building.

The courts have often said in such circumstances that the law of contract provides for a chain of indemnity connecting the ultimate user with the original producer: for example D is the ultimate user or consumer who purchased from C the retailer, C having purchased from B the wholesaler and B having purchased from A the manufacturer. D can sue C for breach of contract but not B or A. However, if C is sued by D, then C will have a right of indemnity against B who in turn has a right of indemnity against A, creating 'the chain of indemnity' that links the manufacturer to the ultimate user.

Unfortunately, the strength of a chain of indemnity is only as great as its weakest link. If C the retailer becomes insolvent a critical link in the chain between D and A will have been broken. Further, a purchaser of a freehold building is faced with the difficulty of the principle of ‘caveat emptor’ (buyer beware) and the tenant of a leasehold building with the difficulty of full repairing covenants in the lease.

The future purchaser or tenant must rely on derivative contractual rights. Such rights arise by assignment, which is a unilateral act, or by novation that is synallagmatic (each party is bound to provide something to the other party – see Essentials of a contract).

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Assignment.
*Assignment of choses in action.
*Collateral warranty.
*Contract.
*Latent defects.
*Novation.