Sam, a shopkeeper, dies unexpectedly at the age of 46.His lifelong business associate, Paul, is appointed the administrator of the estate.Sam had a personal debt of $8,000 which he owed to Art's Appliance Store.Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?
A)The oral statement is enforceable because Paul is the administrator.
B)An oral statement such as this is not enforceable because it is outside the statute of frauds.
C)An oral statement such as this is not enforceable because this promise is within the statute of frauds.
D)The oral statement is enforceable because it is a collateral promise.

Question

Quizplus · Accepted Answer

An oral statement such as this is not enforceable because this promise is within the statute of frauds, which requires certain promises to be in writing to be enforceable, including promises to pay the debt of another.

Sam, a Shopkeeper, Dies Unexpectedly at the Age of 46