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Essay text:
To remain current, the broadening of its application is essential.
To support my argument, I will discuss:
? The concept of collateral contract;
? When collateral contract may be argued; and
? The limitations upon the likelihood of its success in the Australian courts.
COLLATERAL CONTRACT DEFINED
The concept of collateral contract may be defined as ?a contract where the consideration is entry into another contract, and co-exists side by side with the main contract'. A promise that was not included in the principal contract may be enforced as a collateral contract, as clearly illustrated by Lord Moulton in Helibut, Symonds & Co v Buckleton:
?It is evident, both on principle and on authority, that there may be a contract, the consideration for which is the making of some other contract...
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