Editing Contracts/Collateral contract
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=== Promissory in nature === | === Promissory in nature === | ||
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.<ref name=":0" /> In ''[[JJ Savage and Sons Pty Ltd v Blakney]]'' a mere expression of opinion was held insufficient to be satisfied as a promise. In ''[[Crown Melbourne Limited v Cosmopolitan Hotel (Vic) Pty Ltd]]'' a statement by a landlord made to intending tenants when negotiating a lease that they would be “looked after | 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.<ref name=":0" /> In ''[[JJ Savage and Sons Pty Ltd v Blakney]]'' a mere expression of opinion was held insufficient to be satisfied as a promise. In ''[[Crown Melbourne Limited v Cosmopolitan Hotel (Vic) Pty Ltd]]'' a statement by a landlord made to intending tenants when negotiating a lease that they would be “looked after at renewal time”, would not bind the landlord to offer a further five year lease.<ref>Crown Melbourne Limited v Cosmopolitan Hotel (Vic) Pty Ltd [2016] HCA 26.</ref> | ||
=== Intention to induce === | === Intention to induce === |