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. At a minimum, what must be in writing to constitute a written agreement in accordance with the Statute of Frauds?
A) Date, parties identified, terms of agreement, signature of both parties.
B) Parties identified, terms of agreement, signature of both parties.
C) Date, parties identified, terms, signature of guarantor.
D) Parties identified, terms, signature of guarantor.
E) Date, terms, signature of both parties.

Question

Quizplus · Accepted Answer

The Statute of Frauds requires that certain contracts, including those involving a guarantor, be in writing to be enforceable. The essential elements that must be in writing are the identification of the parties involved, the terms of the agreement, and the signature of the party assuming responsibility, in this case, the guarantor (Mao). The date and the signature of both primary parties (Mai and Greentree Financing Ltd.) are not strictly required under the Statute of Frauds for the guarantee to be enforceable.