Collateral contracts and warranties can create enforceable third-party obligations alongside a principal contract. Collateral contracts and collateral warranties arise where a third party's assurance accompanies a principal contract and creates independent obligations enforceable by or against that third party. To be treated as a collateral contractual term or warranty courts require contractual intention and consideration. Manufacturer guarantees given with a dealer's sale exemplify collateral contracts between manufacturer and purchaser. Statutory consumer guarantees may impose independent obligations irrespective of collateral-contract formalities; otherwise consideration remains essential. Examples include card-issuer payment undertakings and dealer representations enforceable against dealers in hire-purchase sales.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Collateral contracts and warranties can create enforceable third-party obligations alongside a principal contract.
Collateral contracts and collateral warranties arise where a third party's assurance accompanies a principal contract and creates independent obligations enforceable by or against that third party. To be treated as a collateral contractual term or warranty courts require contractual intention and consideration. Manufacturer guarantees given with a dealer's sale exemplify collateral contracts between manufacturer and purchaser. Statutory consumer guarantees may impose independent obligations irrespective of collateral-contract formalities; otherwise consideration remains essential. Examples include card-issuer payment undertakings and dealer representations enforceable against dealers in hire-purchase sales.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
