Business Law 1- Contracts 19. The recession has been very tough on our friend, T
ID: 2510487 • Letter: B
Question
Business Law 1- Contracts
19. The recession has been very tough on our friend, Tommy Tarleton. Every business venture he has tried has failed miserably. His last venture, ostrich ranching, almost bankrupted him. Tommy is deeply in debt, and his future looks dim. Tommy’s good friend, Kate, hates to see Tommy in such bad shape. Unlike Tommy, Kate has weathered the recession well and has plenty of cash to help Tommy. Kate calls Tommy’s creditors and offers to pay off Tommy’s debts. Before she can pay the creditors, however, Kate and Tommy have a huge fight, and Kate refuses to pay the creditors on Tommy’s behalf. The creditors sue Kate for breaching her promise to pay them. Can the creditors recover from Kate?
a. Yes, because she promised to pay the debts.
b. Yes, but only if her promise to pay the debts was in writing.
c. No, because a person is never obligated to pay for debts they did not incur themselves.
d. No, unless Kate co-signed on Tommy’s debts when he originally incurred them.
e. None of the above.
Explanation / Answer
b. Yes, but only if her promise to pay the debts was in writing.
ACTUALLY KATE IS NEED NOT TO PAY ANY OBLIGATION TO CREDITORS.BUT SHE PROMISED TO PAY CREDITORS AND ASSUSRETHEM IN WRITING THEN SHE HAS TO PAY THE DEBTS DUE
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