All collateral promises must be in writing to be enforceable.

Name: All collateral promises must be in writing to be enforceable.
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

All collateral promises must be in writing to be enforceable.​

Quizplus · Accepted Answer

This statement is incorrect. While some collateral promises, such as those made by a guarantor, may need to be in writing to be enforceable, there are several oral collateral promises that can be legally binding. For example, a verbal promise to pay back a loan made to someone else can be considered a collateral promise and enforceable in some circumstances.

All Collateral Promises Must Be in Writing to Be Enforceable