A collateral contract is not an example of an exception to the privity of contract rule.

Name: A collateral contract is not an example of an exception to the privity of contract rule.
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A collateral contract is actually an example of an exception to the privity of contract rule. It occurs when a third party enters into a separate contract with one of the parties to the main contract, which creates obligations that may be enforced by the third party, despite not being a party to the main contract.

A Collateral Contract Is Not an Example of an Exception