17. Robert Perry was a hog farmer in Ohio. He owed $26,000 to Sunrise Cooperative, a supplier of hog feed. Because Perry was in debt, Sunrise stopped providing him hog feed on credit but would only deliver feed to him on a cash-only basis. Perry was also past due on money owed Farm Credit Services, a loan agency. Perry promised Farm Credit he would be able to repay his debt to them as soon as his hogs were big enough to sell. The problem was that Perry could not raise the hogs without feed and did not have the cash to purchase the feed. Farm Credit was determined to bring home the bacon so it used its influence to convince Sunrise Cooperative to deliver the feed to Perry on credit. Farm Credit orally promised Sunrise that if Perry was unable to pay for the feed delivered, Farm Credit would pay any of the debt that Perry was unable to take care of. Based on this oral guarantee, Sunrise delivered the feed to Perry on credit. When Perry defaulted on the feed payments to Sunrise, the feed supplier sued Farm Credit Services to collect the debt. Farm Credit claimed that their promise was not enforceable because it was not in writing.

Can Sunrise collect the debt from Farm Credit?

Determine whether Farm Credit is liable for their oral promise to pay Perry's debts. Specifically state the legal principle that applies to support your answer.