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Darlington Borough Council v Wiltshier Northern [1995]

Facts

  • The council commissioned a bank to carry out a construction project for them
  • Upon completing the construction, the council took ownership of the building
  • The building work was defective

Issue

  • Could the bank sue the builders, to whom they had no contractual relationship

Decision

  • Yes, claim allowed

Reasoning

  • As both parties to the building contract were aware that the building was for the benefit of the council, it was foreseeable that the council would suffer any loss due to defective building work
  • The council could therefore claim against the builder ad the contract had been assigned
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