Solved

Big Bank Is a Major Creditor of Bonwill Department Store

Question 37

Multiple Choice

Big Bank is a major creditor of Bonwill Department Store.After a major loss in profits due to poor holiday sales,Big Bank decides to help keep Bonwill from bankruptcy.Big bank orally promises Mary Tudor,a supplier to Bonwills,that it will guarantee Bonwill's payment for goods that Mary sells to Bonwill.Most likely,Big Bank's oral agreement:


A) is unenforceable under the statute of frauds.
B) is unenforceable because it is a collateral contract.
C) is enforceable under the "main purpose" or "leading object" exception to the statute.
D) is enforceable because a collateral contract is not covered under the statute of frauds.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents