Asked by Austin Braun on May 16, 2024
Verified
The distinction between a guarantee and a(n) ________ is important, because in most provinces the Statute of Frauds requires that only a guarantee be in writing.
A) obligation
B) agreement
C) promise
D) indemnity
E) interest
Guarantee
A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, especially that a product will be repaired or replaced if not of a specified quality.
Statute of Frauds
A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.
Indemnity
A security or protection against a loss or other financial burden.
- Identify the distinctions between primary and secondary duties in contractual arrangements.
- Acknowledge the critical need for written documentation in particular contracts pursuant to the Statute of Frauds.
Verified Answer
BB
Benjamin BustosMay 17, 2024
Final Answer :
D
Explanation :
The distinction is between a guarantee and an indemnity. A guarantee is a promise to answer for the debt or default of another and must be in writing under the Statute of Frauds in many jurisdictions. An indemnity, on the other hand, is a promise to compensate for any loss suffered, which may not require the same formalities as a guarantee.
Learning Objectives
- Identify the distinctions between primary and secondary duties in contractual arrangements.
- Acknowledge the critical need for written documentation in particular contracts pursuant to the Statute of Frauds.