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If the main purpose of the promisor (surety) is to obtain an economic benefit that he did not previously enjoy, the promise is not within the statute of frauds.
Economic Benefit
An economic benefit is a gain or advantage, usually measured in terms of money or value, received as a result of an action or transaction.
Statute of Frauds
A legal doctrine that requires certain types of contracts to be executed in writing and signed by the party to be charged.
Surety
A party that takes responsibility for another's performance of an undertaking, such as fulfilling the terms of a contract.
- Contrast the roles and duties of a principal debtor, a surety, and a creditor in the setting of guarantee contracts.
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Learning Objectives
- Contrast the roles and duties of a principal debtor, a surety, and a creditor in the setting of guarantee contracts.
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