Warranty Assignment Agreement

The NSW Supreme Court found that neither the assignment nor the consent were limited to the means invoked after the assignment. The assignment has been widely interpreted. The result revolved around the conditions of the assignment and consent, with the surrounding circumstances. The fact that the task has been interpreted crudely is perhaps not surprising in light of these elements. However, this case is an important reminder that all the restrictions that a party wishes to impose on the scope of the assignment are clearly identifiable and that caution should be exercised when considering and granting consent. WGC acknowledged that the concrete paving was defective and that the safeguards in the D-C contract had been breached. However, WGC submitted that the ground for the breach of the guarantee had arisen prior to the transfer and that the terms of transfer were not sufficiently broad to extend to such means. In other words, WGC submitted that if a guarantee had been breached prior to the execution of the facts, the authorization to continue this guarantee had not been entrusted to tzaneros and remained with P-O, the principal obligated of the D-C contract. Tzaneros argued that the assignment was not limited in this way, which allowed it to sue WGC for breach of guarantees under the D-C contract.

, whether or not they were committed prior to the transfer. Tzaneros has commenced proceedings in the NSW Supreme Court for breach of contractual guarantees allegedly covered by the assignment. Tzaneros claimed damages of nearly $15 million from WGC and other parties for damages. A key question was whether the transfer of the benefit of contractual guarantees allowed Tzaneros to assert its action against WGC. This handy note focuses on the transfer of warranty guarantees (see practical note: What are warranty guarantees?). You will find more detailed information on the transfer in general under practical notes: classification in the work contracts and legal and fair assignment in the work contracts. Although this practical note deals with guarantees, the principles apply even when the rights of third parties are used as an alternative to guarantees, see: Contracts (Rights of Third Parties) Act 1999 in construction- over-sicht. To simplify, the contractual assignment usually involves the transfer of one or more contractual rights from a contractor (the assignee) to a third party (the assignee). The assignment allows the third party to assert these rights against the other contracting party, as if it were a party to the treaty.