In order to establish that a collateral contract exists,it is necessary to show that the person making the statement intended it to be acted upon and that the person,to whom the statement was made,relied upon the statement.

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A collateral contract is a contract that is separate and distinct from the main contract, but which supports or relates to it. To establish the existence of a collateral contract, the person making the statement must have intended it to be acted upon by the other party, and the other party must have relied on the statement. This is known as the "intention-reliance" test. Without both elements, a collateral contract cannot be established.

In Order to Establish That a Collateral Contract Exists,it Is