ABSTRACT

In some cases collateral warranties also seek to restrict liability by the addition of what are known as 'net contribution clauses'. The development of collateral warranties created the contractual relationship needed. Accordingly, the collateral warranty meant that Kirkman's liability for costs was given the wider meaning, which had been Glasgow's contention in the first place and also included consequential losses arising from Kirkman's breach. Thus, in Glasgow without collateral warranties Glasgow Airport would not have been able to recover either its own. The Contracts Act 1999 there is now a method of changing the reliance on separate collateral warranties by incorporating them into the main contract. The term 'variation' in the Act means a variation to the terms of the agreement by further agreement between the original parties but it does not affect the terms of a 'construction contract, which allow one of the parties to unilaterally alter, or 'vary', the details of the work to be carried out.