Res Inter Alios Acta - Insurance Contracts

Insurance Contracts

Many UK cases cite insurance contracts as being res inter alios acta. It seems to be in line with the "privity of contract" doctrine.

case law: George E. Taylor & Co. v. Percy Trentham (1980)

Taylor were nominated subcontractors to Trentham. They also had a contract with the employer (collateral contract) whereby they warranted due performance of the subcontract works so that the main contractors should not become entitled to an extension of time. The employer paid Trentham only £7,526 against an interim certificate of £22,101. The amount withheld was the balance payable to the subcontractors after deduction of the main contractor's claim against them for delay. It was held that the employer was not entitled to withhold the money as the contract between the employer and the subcontractor was res inter alios acta. (Ashworth, 2006, contractual procedures in the construction industry 5th edition, pearson prentice hall)


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