Question

Mr. Grove is a business man. He has lots of contracts that he deals with in his life. Read each of the following scenarios. Decide which ones must be in writing because of the statute of frauds. Explain why each contract is covered by the statute of frauds or why it is not. These should be short answers, two or three sentences.

The Pomelos also need some stuff around town. They specifically need fertilizer, insecticide and smudge pots. Without them, they can't keep their trees going or healthy. If their trees aren't going and healthy, they can't pay their rent and the insects will spread to Mr. Grove's trees. He agrees to pay for any items that will keep bugs off of the trees.

Answer 1

Collateral promise refers to act of paying the debt of another person which is ancillary to original promise. It should be in writing so as to be enforceable. However there is one exception which applies to the situation in the question.

The exception is that when the promiser agrees and guarantees to pay the debt of another and primary objective of the promise is with some benefit to promiser himself that is keeping the insects from spreading to Mr. Grove’s trees, the contract would be then enforceable even in the case of being not in writing.