British Overseas Bank Nominees Ltd and another v Stewart Milne Group Ltd

Commercial contract – Breach of contract – Collateral warranty – Construction – Prescription – Contractual bar. Court of Session: In an action in which the pursuers in reliance on a collateral warranty in their favour sued the defender for breach of obligations defined by reference to a building contract between the defender and the pursuers' predecessors as owners of a retail park designed and constructed by the defender, the court rejected the defender's argument that because any obligation it might have owed to the pursuers' predecessors as owners in respect of breach of the building contract had been extinguished by the operation of prescription then, on the proper construction of the collateral warranty, the pursuers were contractually barred from succeeding against it in the present action.

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