collateral advantage

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The situation in which a contracting party uses his stronger bargaining position to obtain terms that are advantageous to him, often disproportionately so, over and above the benefits conferred upon him by the core contract itself. Such an advantage may be conferred upon one of the parties to a contract by the inclusion of an option to purchase or a * solus tie, for example. Clauses that confer a collateral advantage in the context of a mortgage contract, thereby clogging or fettering the mortgagor's equitable right to redeem, are susceptible to being struck down by the court.

Subjects: Law.

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