A collateral contract is one where the parties to one contract enter into or promise to enter into another contract. Thus, the two contracts are connected and it may be enforced even though it forms no constructive part of the original contract.
The collateral contract is usually made to induce one of the parties to enter into the main contract. For example, if a person is buying a car from a dealer, the dealer may make a collateral contract with the buyer to provide a warranty for the car.
Sample Movie Production Agreement Description of Project. . Production Specifications. The Project will be produced in color on , using both studio and location recording techniques. Budget. Script. Date of Delivery. Ownership of Rights in Project. Credits. Right to Enter Project in Competitions.
How to write a letter of agreement Title the document. Add the title at the top of the document. List your personal information. Include the date. Add the recipient's personal information. Address the recipient. Write an introduction paragraph. Write your body. Conclude the letter.
Examples of collateral documents are a security agreement, guarantee and collateral agreement, pledge agreement, deposit account control agreement, securities account control agreement, mortgage, and UCC-1s.