The main purpose exception to the Statute of Frauds allows oral collateral contracts to be enforced if there is a monetary benefit to the guarantor.

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The main purpose exception to the Statute of Frauds allows oral collateral contracts to be enforced if there is a direct economic benefit to the guarantor, not necessarily just a monetary benefit. This exception is based on the notion that the guarantor's primary motivation for entering into the agreement was to benefit themselves, rather than simply to aid the primary obligor. Therefore, if the guarantor receives some sort of benefit from the transaction beyond just moral obligation or good faith, the oral collateral contract may be enforceable.

The Main Purpose Exception to the Statute of Frauds Allows