Fact Pattern 28-1A
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 28-1A. If Edie is a guarantor, then the guaranty is re?quired to be in writing because of
A) the debtor's right of redemption.
B) the co-signer's right of contribution.
C) the creditor's transfer of possession.
D) the Statute of Frauds.

Question

Fact Pattern 28-1A 
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 28-1A. If Edie is a guarantor, then the guaranty is re?quired to be in writing because of
A) the debtor's right of redemption.
B) the co-signer's right of contribution.
C) the creditor's transfer of possession.
D) the Statute of Frauds.

Quizplus · Accepted Answer

The Statute of Frauds requires that guarantees or promises to answer for the debt of another must be in writing to be enforced. Therefore, if Edie is a guarantor, the guaranty must be in writing to be legally enforceable. Options A, B, and C are not relevant to the requirement of a written guaranty.