John drives his car into the home of Jack causing extensive damage. James, John's brother, goes to Jack and makes the following statement. "I'll pay for the damage caused by my client if he is unable to pay you." Which of the following is true?
A) James statement is a promise of guarantee.
B) James' statement does not have to be in writing to be enforceable.
C) James' statement has to be in writing to be enforceable.
D) B & C
E) A & C

Question

Quizplus · Accepted Answer

James' statement is a promise of guarantee, which means that he is offering to pay if John is unable to pay. This type of promise is called a collateral promise and is enforceable even if it was not in writing. However, according to the Statute of Frauds, any promise to answer for the debts of another must be in writing to be enforceable. Therefore, James' statement has to be in writing to be enforceable.

John Drives His Car into the Home of Jack Causing