A collateral warranty is an ancillary document that supports a primary construction contract involving an agreement with a third party. At times, a contractor or architect needs to warrant that he has taken care of the duties outlined in the contract that established the work order.Know More
Many times collateral warranties come with obligations that have an influence on the contractor or consultant, such as setting requirements for materials or for the quality level of a finished job, expecting it to be finished at a particular level of quality. A collateral warranty can invoke third-party contractual rights that allow for claims regarding losses that, without the warranty, would not be recoverable. Third-party rights permit people or entities, not parties to a contract, to enforce that contract.
Some types of collateral warranty are somewhat weaker in their construction, referring to a fairly ambiguous "duty of care" or other obligation under the building contract or subcontract. Collateral warranties exist for three reasons: they continue providing security for the construction, tort claims have only mixed results in court and privity of contracts keeps third parties from having to depend on the contracts of other people. Without collateral warranties, entering into construction contracts represents a significant risk on the part of the client.Learn more about Law
A tenant estoppel certificate is a certification by a tenant to a third party, such as a potential buyer or a lender, of the terms and status of the tenant's lease, states LandlordStation.com. The estoppel certificate is for the benefit of the third party considering a transaction with the property.Full Answer >
Divorce mediation is a formal meeting with a third party mediator where divorcing couples seek ways to find solutions to spousal support, child custody and child support, according to About.com. In some cases, mediators are appointed by the court and assist with resolutions prior to a divorce hearing.Full Answer >
The witness is an objective and uninterested third party who is completely sound of mind and trusted by the party or parties in question. The Law Dictionary relates that the "ideal" witness has known all involved long enough to provide verification that each person is who he says he is.Full Answer >
According to the United States Department of State, a non-binding contract lays out the terms of an agreement without obligating either party to fulfill the terms. It is used to create an understanding of an agreement before a formal agreement is written out or finalized. It can also be used to create a moral or political obligation without creating a formal agreement.Full Answer >