Legal Definitions - personal warrandice

In Scots law, personal warrandice refers to a specific type of guarantee or promise made by a person who is granting or transferring a right, property, or interest to another party. It is a personal obligation undertaken by the granter to the grantee.

Essentially, when someone provides personal warrandice, they are personally guaranteeing that:

• They have the full legal right and authority to make the grant or transfer.
• The grantee will be able to enjoy the property or right without interference or challenge from the granter themselves, or from anyone else claiming a superior right through the granter.

If a defect in the title or right later emerges, or if a third party successfully challenges the grantee's enjoyment of what was granted, the granter is personally obligated to compensate the grantee for any loss suffered. This compensation typically involves financial reimbursement.

Examples of Personal Warrandice:

• Sale of a Residential Property:

  Imagine Sarah sells her house to Mark. In the legal documents for the sale, Sarah provides personal warrandice to Mark. This means Sarah is personally guaranteeing to Mark that she is the rightful owner of the house and has the legal authority to sell it. If, after the sale, it is discovered that a previous owner had granted a right of way across the garden to a neighbor that Sarah failed to disclose, and this right of way significantly diminishes the property's value or Mark's enjoyment, Sarah would be personally liable to compensate Mark for the loss he incurred due to this undisclosed defect in title.

• Grant of a Fishing Right:

  Consider a landowner, Mr. Henderson, who grants a local angling club the exclusive right to fish in a section of a river that runs through his estate. As part of the agreement, Mr. Henderson provides personal warrandice to the angling club. This guarantees that he has the sole right to grant such fishing privileges and that the club's enjoyment of this right will not be challenged by him or anyone claiming through him. If it later comes to light that a portion of that river section was actually owned by a neighboring estate, and that estate successfully prevents the club from fishing there, Mr. Henderson would be personally responsible for compensating the angling club for the loss of the promised fishing rights.

• Transfer of Business Assets:

  A small business owner, David, sells his graphic design studio, including its client list, intellectual property rights (like unique logo designs), and equipment, to another designer, Emily. In the sale contract, David includes personal warrandice regarding the intellectual property. This means David personally assures Emily that he is the sole owner of these designs and has the right to transfer them. If, after the sale, a former freelance designer successfully sues Emily, claiming ownership of some of the "unique" logo designs that David transferred, David would be personally liable to compensate Emily for the legal costs and damages she incurs due to the defective title to those intellectual property assets.