Question

Business Law Help

Jeremy took his mother on a special holiday to Mountain Air Resort. Jeremy was a frequent patron of the resort and was well known by its manager. The resort required each of its patrons to make a large deposit to ensure payment of the room rental.  Jeremy asked the manager to waive the requirement for his mother and told the manager that if his mother for any reason failed to pay the resort for her stay there, he would cover the bill. Relying on Jeremy’s promise, the manager waived the deposit requirement for Jeremy’s mother. After she returned home from her holiday, Jeremy’s mother refused to pay the resort bill. The resort manager tried to collect the sum from Jeremy, but Jeremy also refused to pay, stating that his promise was not enforceable under the Statute of Frauds. Is Jeremy correct? Explain fully.

Answer 1

Jeremy is correct in this scenario. The Statute of Frauds has certain requirements to meet, out of that one is that certain contractual agreements be in writing. One such agreement, which must be in writing, is an agreement to act as a guarantee to another in case the original debtor fails to pay.
The situation that is being described in this case is a classic example of the Statute of Frauds. Regardless of how well Jeremy knew the resort manager, due to the manager's failure to get the promise in writing, his promise to pay his mother's debt is unenforceable in law.