Fact Pattern 21-1
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 21-1. If Robin is a guarantor, then the guaranty is required to be in writing because of

Question

Fact Pattern 21-1
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 21-1. If Robin is a guarantor, then the guaranty is required to be in writing because of​

Quizplus · Accepted Answer

The Statute of Frauds requires certain contracts, including guaranties, to be in writing to be enforceable. Therefore, if Robin's guaranty is required, it must be in writing. The other options listed do not pertain to the enforceability of the guaranty.

Fact Pattern 21-1 Petro Oil Refinery Asks Quality Bank for a Loan to a Loan