When one person agrees to pay the debt of another as a favor to that debtor,it is called
A)promisory representation.
B)a mutual promise.
C)promisory estoppel.
D)a collateral promise.

Question

Quizplus · Accepted Answer

When one person agrees to pay the debt of another as a favor to that debtor, it is known as a collateral promise. A collateral promise is a type of promise made by a third party to pay a debt owed by another person if that person fails to pay the debt. In this situation, the third party, who is not obligated to pay the debt, makes a promise to the creditor.

When One Person Agrees to Pay the Debt of Another