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Simple English definitions for legal terms
accessory contract
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A quick definition of accessory contract:
An accessory contract is an agreement between two or more parties that creates obligations that can be enforced by law. It can be a written document or a verbal agreement. A contract is like a promise that must be kept, and if it is broken, there are consequences. Sometimes people use the word "contract" to refer to the written document, but it is important to remember that the agreement itself is what matters, not the paper it is written on.
A more thorough explanation:
An accessory contract is a type of contract that is created in connection with another contract. It is a separate agreement that is dependent on the main contract and cannot exist without it.
For example, if you buy a car on credit, you will sign a loan agreement with the bank. The loan agreement is the main contract, and the accessory contract is the security agreement that gives the bank the right to repossess the car if you default on the loan.
Another example of an accessory contract is a guarantee agreement. If you are renting an apartment, the landlord may require you to have a guarantor who will be responsible for paying the rent if you cannot. The guarantee agreement is the accessory contract that creates this obligation.
Accessory contracts are important because they provide additional security for the parties involved in the main contract. They ensure that the obligations of the main contract are fulfilled and that the parties are protected in case of default.