Multiple choice

A collateral event is an event

  1. the performance for which is neither directly promised nor it is the entire consideration for the promise

  2. the performance for which is directly promised

  3. it is the entire consideration for the promise

  4. the performance which is agreed upon by the parties in a Court of Law
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A collateral event in contract law refers to an event or performance that is connected to the main contract but is neither directly promised by the parties nor constitutes the entire consideration for the contract. It's incidental to the main purpose. Option A correctly defines a collateral event as a performance neither directly promised nor forming the entire consideration. Option B incorrectly describes a direct promise. Option C describes the entire consideration, not collateral. Option D incorrectly mentions court agreements rather than the nature of contractual performance.

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