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- Dictionarycollateral contract
noun
- 1. a subsidiary contract which induces a person to enter into a main contract or which depends upon the main contract for its existence.
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Feb 1, 2023 · A collateral contract is a secondary agreement that is related to the main contract and serves as a guarantee of its performance. Learn the legal principles, reasons, and examples of collateral contracts and how they differ from the main contract.
Sep 23, 2021 · A collateral contract defined as a contract where the parties to one contract enter into or promise to enter into another contract. It is a promise which is not a term of contract. However, if without the main contract, it properly would not be existed.
A collateral contract is usually a single term contract, made in consideration of the party for whose benefit the contract operates agreeing to enter into the principal or main contract, which sets out additional terms relating to the same subject matter as the main contract.
A collateral contract with three or more parties obligates each of the contracting parties to meet their individual accountability to each other party. Called also collateral warranty.
Collateral contracts are agreements formed alongside the main contract, based on statements or promises that induce the other party to enter the main contract. Learn how to identify, enforce and avoid collateral contracts, and see examples of direct and third-party collateral contracts.
A collateral contract is a separate agreement that adds to the main contract, but does not form part of it. Learn how to identify, enforce and avoid collateral contracts in business transactions with LegalVision.
A collateral contract is a side agreement that two parties make, either while they're making their main contract or promise to make in the future. Learn more with ContractHound's terminology guide and see examples of collateral contracts in different scenarios.
