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Regarding agreements collateral to another agreement, which statement is correct?
ACollateral agreements are void in every case
BOnly collateral agreements to void agreements are illegal
CAgreements collateral to an illegal agreement are void, while those collateral to a merely void agreement may be valid
DCollateral agreements are always enforceable
Answer & Solution
Correct answer: C. Agreements collateral to an illegal agreement are void, while those collateral to a merely void agreement may be valid
All illegal agreements are void, and agreements collateral to them are also void. A void agreement is not necessarily illegal, so a collateral agreement to it may still be valid.
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