A collateral contract is one in which the consideration for a promise is the making of another contract.
Three elements must be established:
- A statement must be made to induce entry into the contract
- The statement must be relied upon
- The statement relied upon must be promissory in nature.
Where the main contract precedes the collateral contract there can be no contract as past consideration is not good consideration.
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019