Sam,the owner of a toy store,dies unexpectedly at the age of 56.His lifelong business associate,Paul,is appointed the administrator of the estate.Sam had a personal debt of $8,000 which he owed to Art's Appliance Store.Paul says to Art,"If there isn't enough money in the estate,I'll personally see that the bill is paid." Which of the following is correct?
A) The oral statement is enforceable because Paul is the administrator.
B) An oral statement such as this is not enforceable because it is outside the statute of frauds.
C) An oral statement such as this is not enforceable because this promise is within the statute of frauds.
D) The oral statement is enforceable because it is a collateral promise.

Question

Quizplus · Accepted Answer

An oral statement like this is not enforceable because it falls within the statute of frauds, which requires certain types of contracts, including promises to pay the debt of another, to be in writing to be enforceable.

Sam,the Owner of a Toy Store,dies Unexpectedly at the Age