Asked by
Jonae' Thompson
on Dec 18, 2024
Verified
X wished to purchase a motor vehicle from Y on credit, but X was unemployed, and Y was hesitant to sell to him for that reason. Z, who was quite wealthy, said to Y: "Sell X the automobile on credit, and if X does not pay you, I will." If Z made the guarantee in writing, and signed the document, the guarantee would not be enforceable until X defaulted on a demand for payment by Y.
Guarantee
A collateral promise (in writing) to answer for the debt of another (the principal debtor) if the debtor should default in payment.
Demand for Payment
A formal request issued by a creditor to a debtor requiring payment of an outstanding debt by a specific date.
- Gain insight into the foundational aspects of the Statute of Frauds and its utilization in contracts necessitating written form.
- Familiarize oneself with the framework of guarantees and the commitments entailed in cosigning, in addition to their legal effectiveness.
Verified Answer
LM
Learning Objectives
- Gain insight into the foundational aspects of the Statute of Frauds and its utilization in contracts necessitating written form.
- Familiarize oneself with the framework of guarantees and the commitments entailed in cosigning, in addition to their legal effectiveness.