Assignment Task:
- Amy needs $40,000.
- Ms. Lender agrees to loan Amy the $40,000 so long as Mr. Surety guarantees the debt. (In other words: so long as Mr. Surety agrees to be the surety for Amy's debt).
- Mr. Surety tells Amy and Ms. Lender, "I will pay Amy's debt of $40,000 if Amy defaults on it."
- Based on Mr. Surety's verbal statement, Ms. Lender loans Amy the $40,000.
- Amy makes no payments on the $40,000.
- Ms. Lender asks Mr. Surety to pay the $40,000 based on his verbal Surety Agreement.
- Mr. Surety refuses to pay Ms. Lender.
- Ms. Lender sues Mr. Surety for the $40.000.
What is the most likely outcome of that lawsuit?
Group of answer choices
- Ms. Lender should LOSE -- because Surety Agreements ARE covered by the Statute of Frauds.
- Ms. Lender should WIN -- because Surety Agreements ARE NOT covered by the Statute of Frauds.
- Ms. Lender should WIN -- based on a claim of contributory estoppel.
- Ms. Lender should LOSE -- because Ms. Lender always knew Amy was a no-good, unreliable, so-n-so.