Asked by Emmanuel Rojas on May 09, 2024
Verified
Which of the following is a false statement regarding the main-purpose rule as it relates to a promise to pay someone else's debt?
A) The main-purpose rule is an exception to the general rule that a promise to pay someone else's debt needs to be in writing.
B) If the main purpose for incurring a secondary obligation is to obtain a personal benefit,the promise does not need to be in writing.
C) If the main purpose for incurring a primary obligation is to obtain a personal benefit,the promise does not fall within the statute of frauds and must be in writing.
D) The main-purpose rule assumes that a party attempting to achieve a personal benefit will not back out of the agreement; thus,there is no need for a written record of the agreement.
E) The court's job is to use the context surrounding the agreement to determine the third party's main purpose for entering the agreement.
Main-Purpose Rule
A legal principle that if the main purpose of a guarantor to sign a surety agreement is to secure a personal benefit, the agreement does not have to be in writing to be enforceable.
Secondary Obligation
An obligation that arises indirectly or as a result of another primary obligation, often in legal or financial contexts.
Statute of Frauds
A legal concept that requires certain types of contracts to be written and signed to be enforceable.
- Understand the main-purpose rule and its application to promises to pay another's debt.
Verified Answer
OG
Obaapa GattyMay 16, 2024
Final Answer :
D
Explanation :
The main-purpose rule is an exception as to when a promise to pay someone else's debt needs to be in writing.If the main purpose for incurring a secondary obligation is to obtain a personal benefit,the promise does not fall within the statute of frauds and is,therefore,not required to be in writing.The assumption is that a party attempting to achieve a personal benefit will not back out of the agreement; thus,there is no need for a written record of the agreement.The court's job is to use the context surrounding the agreement to determine the third party's main purpose for entering the agreement.
Learning Objectives
- Understand the main-purpose rule and its application to promises to pay another's debt.