Question
Mary agrees to loan Steve $10,000.00for a roofing business for which Steve signs a promissory note.Three days later,Mary receives some information about Steve's business that
Mary agrees to loan Steve $10,000.00for a roofing business for which Steve signs a promissory note.Three days later,Mary receives some information about Steve's business that makes her worry about repayment of the loan from Steve.She asks Paul,who owns a roofing supply company and knows Steve very well,to guarantee the loan.Paul would like to see Steve's businessprosper since Steve has agreed to buy all his roofing supplies from Paul, so Paul orally agrees to be the guarantor of the note.Is the agreement enforceable:
No,because it must be written.
No, because it lacks consideration.
Yes,since the main purpose rule applies.
Yes,since it is a voluntary agreement.
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