Contracts and Sales Multistate Bar Practice Exam

Which term describes a promise to pay another person's debt under the statute of frauds?

1. Suretyship

2. Part Performance

3. Material Misrepresentation

4. Illusory Promise

The correct answer is: Suretyship

The term that describes a promise to pay another person's debt under the statute of frauds is suretyship. In contract law, suretyship refers specifically to an agreement where one party takes on the obligation to fulfill another party's contractual duty, typically concerning the payment of a debt. The statute of frauds requires such agreements to be in writing to be enforceable, given their potential for significant financial implication. Other terms do not apply in this context. Part performance involves actions that may suffice to demonstrate the existence of a contract when it cannot be proven in writing, but it is not specifically related to the promise to pay someone else’s debt. Material misrepresentation refers to a false statement that would influence a party’s decision to enter a contract, which is unrelated to the mechanics of debt obligations. An illusory promise is a statement that appears to be a commitment but lacks substance, meaning it does not create a binding obligation, which contrasts with the clear duty established under a suretyship.