Davis owes a $5 million debt to the C Bank.He also owes $2 million to Samuel.However right now,Davis is having trouble paying either loan.C Bank is willing to finance Davis's debt,but only if Samuel co-signs.Samuel,who fears that he'll get nothing on his $2 million loan if Davis doesn't get some help from the bank,is willing to do so.Thus,C Bank,Samuel and Davis complete a three-party agreement in which the bank agrees to finance the $5 million debt,Davis agrees to pay it back at a certain rate over a certain term,and Samuel agrees to pay the debt "in the event that Davis first defaults." Is this agreement covered by the statute of frauds? Why or why not?

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The Answer of Davis owes a $5 million debt to the C Bank.He also owes $2 million to Samuel.However right now,Davis is having trouble paying either loan.C Bank is willing to finance Davis's debt,but only if Samuel co-signs.Samuel,who fears that he'll get nothing on his $2 million loan if Davis doesn't get some help from the bank,is willing to do so.Thus,C Bank,Samuel and Davis complete a three-party agreement in which the bank agrees to finance the $5 million debt,Davis agrees to pay it back at a certain rate over a certain term,and Samuel agrees to pay the debt "in the event that Davis first defaults." Is this agreement covered by the statute of frauds? Why or why not?

Davis Owes a $5 Million Debt to the C Bank