Dave is a recognized Saxophone player. Dave has played for several major symphonies. Last year Dave went through bankruptcy and in order to pay his rent for a couple of months took out loans from a small bank and pledged his Saxophone as collateral. He was unable to make the first payment on the loan so the bank was getting ready to take the Saxophone for non$-$payment. Dave approached the director of the San Jose Philharmonic International Symphony $-$ Bob $-$ for help $-$ asking him to guarantee payment so he does not lose his Saxophone. Bob agreed to guarantee the payment $-$ partially because Dave is scheduled as the featured performer at the Classic Music Festival in San Jose which Bob manages.

Bob called the bank and said if Dave could not pay, he would, and the bank accepted his guaranty by phone. Dave played for the Music Festival $($it was very successful$),$ but immediately after, left town and his whereabouts are unknown. The bank has contacted Bob and indicated they have not collected from Dave and they expect Bob to pay the debt. Bob told the bank they did not have anything in writing from him $($though there are witnesses who heard Bob guarantee payment$)$ and he believes he will not be liable for the debt. The bank has indicated it will file suit for payment against Bob.

Instructions:

Answer the following questions about this case and make sure to include the quote our textbook where you found the answer.

Issue: What is the legal issue$/$dispute$?$ Be specific. Don$$t just say Contract Law, and don't repeat or summarize the case. I already know what happened.

Decision: Who should prevail?

Support: Provide support for your decision. Describe what the law says about situations like this, and how it applies to this case using the exact words from our textbook.