Question about contract law and bankruptcies

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Architecture-er
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Hey guys, quick question about contract law, it's architecture-based but I think the question is general enough to be answerable, any help/thoughts would be grand!

So there's a form of contract called Design & Build, where the client forms a contract with a contractor to design and produce a building. The contractor then hires their own design team (including an architect).

Typically, if a building is completed but then it transpires that a design fault is present caused by the architect breaching their contractual obligations to the contractor, the client would sue the contractor for the full sum, who would then in turn sue the architect.

However, if the contractor goes bankrupt, does that break the chain? Can the client directly sue the architect for a breach of contract even though the two parties were never directly linked, or can they only pursue compensation through Tort Law based on the architect acting negligently? If that's the only way to get recompense, would the compensation received be the same either way?


Thanks in advance :jumphug:
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(Original post by Architecture-er)
Hey guys, quick question about contract law, it's architecture-based but I think the question is general enough to be answerable, any help/thoughts would be grand!

So there's a form of contract called Design & Build, where the client forms a contract with a contractor to design and produce a building. The contractor then hires their own design team (including an architect).

Typically, if a building is completed but then it transpires that a design fault is present caused by the architect breaching their contractual obligations to the contractor, the client would sue the contractor for the full sum, who would then in turn sue the architect.

However, if the contractor goes bankrupt, does that break the chain? Can the client directly sue the architect for a breach of contract even though the two parties were never directly linked, or can they only pursue compensation through Tort Law based on the architect acting negligently? If that's the only way to get recompense, would the compensation received be the same either way?


Thanks in advance :jumphug:
You need to look up the subject of collateral warranties which are used in the building industry to deal with precisely this situation.
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