For contracts that typically amount to a few pages, collateral warranties undoubtedly generate more than their fair share of case law. Normally, those cases are run of the mill but every now and then one comes along that gives pause for thought.
Such was the case for me with the judgment of the Outer House of the Scottish Court of Session in British Overseas Bank Nominees Ltd v Stewart Milne Group Ltd. This case concerned whether a purchaser was out of time to bring a claim against the contractor under a collateral warranty. Continue reading