Question
A third party is liable for an oral promise to pay another'debt if the main purpose of the promise serves the promisor's own interest. This is called the square
Answer
4.7
(212 Votes)
Dexter
Elite · Tutor for 8 years
Answer
Main purpose rule
Explanation
This question deals with a principle in law called the "Main Purpose Rule". By this principle, even if a promise is typically covered in the 'Statute of Frauds', (which requires many kinds of contract agreements to be in writing) to be enforceable, exceptions are granted when the main purpose of that promise serves the interest of the promisor. Such a promise sustains enforceability, despite lacking in written form, because the commitment was done out of self-interest and not just as a mere favor. So, referring to a third party agreeing by oral contract to bear another's financial obligation when major incentives resonate with his/her personal interest is direct application of the Main Purpose Rule.