25-5-6 - Promise to answer for obligation of another -- When not required to be in writing.
25-5-6. Promise to answer for obligation of another -- When not required to be inwriting.
A promise to answer for the obligation of another in any of the following cases is deemedan original obligation of the promisor and need not be in writing:
(1) Where the promise is made by one who has received property of another upon anundertaking to apply it pursuant to such promise, or by one who has received a discharge from anobligation in whole or in part in consideration of such promise.
(2) Where the creditor parts with value or enters into an obligation in consideration of theobligation in respect to which the promise is made in terms or under circumstances such as torender the party making the promise the principal debtor and the person in whose behalf it ismade his surety.
(3) Where the promise, being for an antecedent obligation of another, is made upon theconsideration that the party receiving it cancel the antecedent obligation, accepting the newpromise as a substitute therefor; or upon the consideration that the party receiving it releases theproperty of another from a levy or his person from imprisonment under an execution on ajudgment obtained upon the antecedent obligation; or upon a consideration beneficial to thepromisor, whether moving from either party to the antecedent obligation or from another person.
(4) Where a factor undertakes for a commission to sell merchandise and to guarantee thesale.
(5) When the holder of an instrument for the payment of money upon which a thirdperson is or may become liable to him transfers it in payment of a precedent debt of his own, orfor a new consideration, and in connection with such transfer enters into a promise respectingsuch instrument.
No Change Since 1953