Fact Pattern 29-1
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 29-1. If Robin is a guarantor, then the guaranty is required to be in writing because of

Question

Fact Pattern 29-1
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 29-1. If Robin is a guarantor, then the guaranty is required to be in writing because of​

Quizplus · Accepted Answer

The Statute of Frauds requires that contracts that involve the promise of a guarantor to pay the debt of another must be in writing to be enforceable. Here, Robin is guaranteeing the debt of Petro, so the guaranty would need to be in writing to be enforceable.

Fact Pattern 29-1 Petro Oil Refinery Asks Quality Bank for a Loan to a Loan