Greentree Financing Ltd. enters into an agreement to lend $25,000 to Mai for the purchase of a car. The loan is guaranteed by her father, Mao. What agreements have to be in writing to be enforceable?
A) Loan Agreement.
B) Guarantee Agreement.
C) The loan agreement if Mai is a minor.
D) Both the Loan Agreement and the Guarantee Agreement.
E) Neither the Loan Agreement nor the Guarantee Agreement.

Question

Quizplus · Accepted Answer

The guarantee agreement must be in writing to be enforceable under the Statute of Frauds, which requires certain contracts, including guarantees, to be in writing.