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

Question

Quizplus · Accepted Answer

A collateral promise is a promise made by a third party to pay the debt of another person, usually as a favor or guarantee. It is collateral because it is not the original promise made by the debtor to repay the debt, but rather an additional promise made by a third party to guarantee the payment of the debt.

When One Person Agrees to Pay the Debt of Another