Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise is enforceable as long as he goes to the bank, declares his promise to guarantee Amanda's loan in front of witnesses, and shakes hands on the deal, giving his word.

Question

Quizplus · Accepted Answer

A promise to stand for the debt of another must be in writing to be enforceable under the statute of frauds.

Amanda, a Recent University Graduate, Needed a Car to Get