The ACE Professional Services Agreement 2017 makes provision for the Client to request the Consultant to provide, or obtain, collateral warranties for the benefit of third parties.
To help make this possible, ACE has published a new document containing two Collateral Warranty Agreements. The two forms of standard agreement cater for a Beneficiary when:
1. They are a tenant/purchaser
2. They are a funder, which includes “step in” rights.
Commenting on its release, ACE’s Agreement’s Consultant Rosemary Beales said: “These two documents are drafted to work “back to back” with ACE Agreements and designed to place no greater obligation on the Consultant, than that which is undertaken by the appointment itself. The warranties can be used where the applicable law is that of England, Wales and Northern Ireland or that of Scotland.”
“Where a warranty is required these warranties provide the appropriate benefit to third parties whilst preserving the Consultant’s position under the Agreement entered into.”
The price for the new Collateral Warranty Agreements are £22.00 plus VAT. As always, ACE members have a 50% discount on all ACE agreements.