Collateral Agreement Doctrine: What You Need to Know
The collateral agreement doctrine is a legal principle that applies to contracts and agreements. It dictates that any additional terms or agreements made outside of the written agreement should not be considered as part of the contract, unless they are explicitly referred to in the written agreement.
This doctrine is important because it prevents parties from relying on oral or informal agreements that are not written in the official contract. It ensures that the terms of the written contract are the only ones that are legally binding.
For example, let`s say you are a business owner who has entered into a written contract with a vendor to purchase products for your store. You and the vendor have a conversation where you agree to buy additional products at a discounted rate. If this agreement is not included in the written contract, the vendor cannot legally enforce it under the collateral agreement doctrine.
There are some exceptions to this doctrine, however. If the additional agreement is made after the written contract is signed, but before the performance of the contract begins, it may be considered part of the original contract. Additionally, if the parties have a history of making similar agreements outside of the written contract, those additional terms may be enforceable.
It is important to note that the collateral agreement doctrine may vary in different jurisdictions and may not apply in certain circumstances. It is always best to consult with a legal professional to fully understand your rights and obligations under any contract or agreement.
In conclusion, the collateral agreement doctrine is an important legal principle that ensures that written contracts are the only legally binding agreements. It protects the parties from relying on informal or oral agreements that are not included in the written contract. However, there are some exceptions to this doctrine, and it may not apply in all circumstances. If you have any questions or concerns about a contract or agreement, it is always best to seek the advice of a legal professional.