Words / C / Law

collateral contract

n./kəˈlætərəl ˈkɒntrækt/

C1CEFR level
80/100Rarity: very rare
TechnicalRegister

A separate, subsidiary agreement whose consideration is entry into the main contract.

The oral assurance about fuel economy stands as a collateral contract, even though it never made it into the sale document.

Topic: Contracts in Legal English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Contracts