Payne borrowed $500 from Long Bank.At the time the loan was made to Payne,Gem orally agreed with Long that Gem would repay the loan if Payne failed to do so.Gem received no personal benefit as a result of the loan to Payne.Which of the following is most likely to be true,under the circumstances?

Question

Quizplus · Accepted Answer

Generally,a guarantor's promise must be made in writing to be enforceable under the statute of frauds.Therefore,Gem's oral promise frees him from any liability.

Payne Borrowed $500 from Long Bank