What is a "collateral agreement"?

A "collateral agreement" refers to an arrangement that is connected or related to a primary contract. This type of agreement is typically intended to provide additional assurances or clarify certain aspects of the main contract, without necessarily altering the core obligations that are laid out in that primary contract. Collateral agreements often serve specific purposes, such as detailing particular conditions or responsibilities that support the overall intent of the primary deal.

In contrast, other options focus on different types of agreements that do not capture the essence of a collateral agreement. For instance, a separate contract unrelated to any other does not involve any link to a primary agreement, while a document that voids previous agreements would fundamentally undermine the notion of a collateral agreement providing additional support or context. Lastly, an informal agreement without legal standing does not meet the criteria for enforceability, which is generally a characteristic of collateral agreements that augment a more formalized contract.