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Napoleon Wanted to Borrow Money from the Bank of Winnipeg

Question 59

Multiple Choice

Napoleon wanted to borrow money from the Bank of Winnipeg.The bank, however, was not entirely convinced that he would be able to repay the debt.It therefore wanted some assurance from Napoleon's friend, Josephine, that she would repay the loan if Napoleon did not.Which of the following statements is most likely to be TRUE?


A) If it was not evidenced in writing, Josephine's promise will certainly be enforceable if it was a guarantee, but it may not be enforceable if it was an indemnity.
B) If Josephine's promise must be evidenced in writing in order to be enforceable, the bank may be able to satisfy that requirement by combining several documents, even if those documents do not refer to each other.
C) If Josephine's promise is not evidenced in writing, and if such writing is required by statute, then neither Josephine nor Napoleon needs to repay the loan.
D) If Josephine's promise must be evidenced in writing in order to be enforceable, then the contract will be unenforceable unless both Josephine and the bank sign the relevant document.
E) If Josephine's promise is properly classified as an indemnity, then the bank cannot demand payment from her unless Napoleon has first refused to pay.

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