Essay
Davis owes a $5 million debt to C Bank.He also owes $2 million to Samuel.However right now,Davis is having trouble paying either loan.C Bank is willing to finance Davis's debt,but only if Samuel co-signs.Samuel,who fears that he will get nothing on his $2 million loan if Davis does not get some help from the bank,is willing to do so.Thus,C Bank,Samuel,and Davis complete a three-party agreement in which the bank agrees to finance the $5 million debt,Davis agrees to pay it back at a certain rate over a certain term,and Samuel agrees to pay the debt "in the event that Davis first defaults." Is this agreement covered by the statute of frauds? Why or why not?
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No,the statute of frauds does not apply ...View Answer
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