The distinction between a guarantee and a(n) ________ is important, because in most provinces the Statute of Frauds requires that only a guarantee be in writing.
A) obligation
B) agreement
C) promise
D) indemnity
E) interest

Question

Quizplus · Accepted Answer

The distinction is between a guarantee and an indemnity. A guarantee is a promise to answer for the debt or default of another and must be in writing under the Statute of Frauds in many jurisdictions. An indemnity, on the other hand, is a promise to compensate for any loss suffered, which may not require the same formalities as a guarantee.

The Distinction Between a Guarantee and A(n) ________ Is Important