Of non-legal obligations, collateral assurance is a bond made over and beyond the deed itself, for the performance of an agreement, or covenant, made between two individuals; so called, for being external, and without the nature and essence of a covenant. A collateral assurance is separate but subservient to the principal contract.
A collateral assurance is a bond that extends beyond the deed itself, serving as additional security for the fulfillment of an agreement or covenant between two individuals. It is termed "collateral" because it is external to the primary contract.