Collateral Contract
English Legal System: Collateral Contract
In the context of the English law, A Dictionary of Law provides the following legal concept of Collateral Contract : A subsidiary contract that induces a person to enter into a main contract. For example, if X agrees to buy from Y goods made by Z, and does so on the strength of Z’s assurance as to the high quality of the goods, X and Z may be held to have made a collateral contract consisting of Z’s promise as to quality given in consideration of X’s promise to enter into the main contract with y.
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