Farah agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

Question

Quizplus · Accepted Answer

The "main purpose" rule allows an oral promise to assume the debt of another to be enforceable if the main purpose or leading object of the promisor is to secure a personal benefit. In this case, for the agreement to be enforceable under this rule, the promise must be primarily for the benefit of Farah, the one making the promise.

Farah Agrees to Assume a Debt Owed by Guitars Inc