A collateral contract may be between one of the parties and a third party.

To prove the term or promise is part of a collateral contract.

Collateral Contracts (between the third party and one of the contracting parties)

The collateral contract will have the effect of adding the representation as a term to the contract.

Sometimes, the so-called "free gift" will constitute a collateral contract, the consideration for which being the entry into the main contract of sale.

This type of misrepresentation is relatively new and was introduced to allow damages in situations where neither a collateral contract nor fraud is found.

Harman J held that there was a collateral contract that he could stay even if it contradicted the written agreement's express terms.

For example, a collateral contract is formed when one party pays the other party a certain sum for entry into another contract.

Beside the contract of sale of the petrol there was a separate collateral contract relating to the World Cup coins.

In the case of Barry v Davies, it was held that an Auctioneer and A buyer had formed a collateral contract.

Therefore, Letter of Credit theoretically fits as a collateral contract accepted by conduct or in other words, an Implied-in-fact contract.

A collateral contract, if forged between the same parties as the main contract, must not contradict the main contract i.e.

Nevertheless, the courts have been remarkably inventive in circumventing the privity doctrine through the development of the collateral contract device and negligent misrepresentation.

A collateral contract is one where the parties to one contract enter into or promise to enter into another contract.

Shanklin had no contractual relationship with Detel Products, but the Court of Appeal found like there was a collateral contract they could use to sue.

A collateral contract is a contract where the consideration is the entry into another contract, and co-exists side by side with the main contract.

In certain commercial contracts, such as goods sold to consumers by a dealer, there is automatically a collateral contract between the consumer and the manufacturer of the goods.

I return to Mr Ritchie's point that what happened here amounted to a collateral contract, that is an independent contract collateral to the main contract.

Such an approach is anomalous especially since buyers will often rely upon promotional literature, and the collateral contract device may be relevant here with regard to express statements made.

These were at times both complex and extremely artificial, and used the law relating to trusts and agencies, along with other areas and ideas such as collateral contracts.

Second, if there was intent (animus contrahendi) to be held to a promise then there may be a collateral contract, that would bind Heilbut to their representation.

However, in this circumstance, the court will readily infer a collateral contract as illustrated by the case of Couchman v Hill [1947]KB 554.

Where goods are marketed indirectly and the manufacturer therefore does not sell directly to the consumer, it can nevertheless happen that the manufacturer makes a collateral contract with the consumer.

It illustrates one of the large exceptions, that a written document is not deemed to be exhaustive of the parties intentions when there is clear evidence of a collateral contract.

Blackpool & Fylde Aero Club v Blackpool Borough Council (offer for tenders binding if accompanied by collateral contract)