Which of the following is true of collateral contracts?
A) The obligor is contractually liable to the guarantor.
B) They are covered by the statute of frauds.
C) They are considered to be original contracts.
D) The guarantor is primarily liable to perform his contractual duty.

Question

Quizplus · Accepted Answer

Situations in which one person agrees to be responsible for the debts or default of another are called collateral contracts. Collateral contracts are covered by the statute of frauds.

Which of the Following Is True of Collateral Contracts