Gates is an entrepreneur and borrows $50,000 from Big Bank to form a new venture. Because Gates did not have sufficient ...

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Gates is an entrepreneur and borrows $50,000

April 14, 2018

Gates is an entrepreneur and borrows $50,000 from Big Bank to form a new venture. Because Gates did not have sufficient credit on his own

to obtain the loan, Big Bank requires Gates's wealthy uncle to guarantee the loan. Which of the following is true about the enforceability of the

guarantee contract?

1.The contract need not be in writing to be enforceable. 2.The contract must be in writing under the statute of frauds because it is land transaction. 3.The contract must be in writing under the parole evidence rule. 4.The contract must be in writing under the statute of frauds because it is a contract for services to be performed in less than
one year. 5.The contract must be in writing under the statute of frauds because it is the promise to pay the debt of another.










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