International Business, Inc. (IBI), agrees to assume a debt of Southern Export Company to First National Bank. This promise is for the benefit of IBI. To be enforceable, the promise must be in writing if the debt is for

Question

Quizplus · Accepted Answer

The statute of frauds requires that certain contracts be in writing to be enforceable. One of these is a contract to assume the debt of another. The statute of frauds applies to contracts for the sale of goods for $500 or more, but it does not apply to contracts for the assumption of debt. Therefore, the promise by IBI to assume the debt of Southern Export Company to First National Bank does not need to be in writing to be enforceable.