An implied contract that binds a party who made a representation or promise that induced a person to enter into a contract with another party is called,
A) a collateral contract.
B) a unilateral contract.
C) privity of contract.
D) a secondary contract.
E) a bilateral contract.

Question

Quizplus · Accepted Answer

A collateral contract is an implied contract that binds a party who made a representation or promise that induced a person to enter into a contract with another party. This representation or promise is not a part of the main contract but it encourages one of the parties to enter into the main contract.

An Implied Contract That Binds a Party Who Made a Representation