A question occurred not also long back about whether paying the debt of another would certainly need continued payments. In other words if firm A pays firm B’s existing creditor for one month, or also a number of months, does company B currently have an obligation to proceed paying agency A’s creditor? If company B does have an obligation, then the creditor have the right to likely come after firm B for agency A’s debt need to both providers fail to make a payment.
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Everyone, or practically everyone knows that a loan can be guaranteed and many kind of of them are, unless you have actually enough resources or other insurance to earlier up the loan. In this situation, commonly the guaranty is in creating. Florida for over 150 years has held the position that the promise to pay the debt of an additional as soon as in writing and also signed by the party guarantying the debt is a valid agreement to pay the debt if the debtor falls short to pay it.
A sensibly typical case deserve to be discovered in the 2nd District Court of Appeal situation, Riba v. Pila, 543 So. 2d 429 (Fla. 2d DCA 1989). In this instance, the wife of the debtor orally agreed to pay her husband’s creditor $100 per month to pay off the debt. The wife said that the statute of frauds barred enforcement of her oral agreement to pay the debt of one more, her husband also. Due to the fact that the wife was not a direct obligor of her husband’s loans, she was not required to make the payments considering that her agreement was not in composing and also there was a lack of consideration.
Although there is a written need, this is not constantly compelled. In J.F. Hoff Elec. Co. v. Goldstein, 560 So. 2d 419, 421 (Fla. 4th DCA 1990), the 4th District Court of Appeal explained that in a basic contractor, subcontractor, owner case, an oral promise to pay deserve to be enforceable. In this situation, the general contractor hired a subcontractor to perform a portion of the work. The subcontractor stopped work because it was not paid by the basic contractor. The subcontractor alleged that the owners agreed to pay the subcontractor to finish its work. The court, citing an 1897 Florida Supreme Court case, noted that if tright here was enough consideration, then the promise to pay the debt due him by the basic contractor, although dental, would certainly be valid and would certainly not be barred by the statute of frauds.
As one deserve to check out from these 2 examples, making a promise to pay the debt of one more have the right to be a little bit tricky. If you have actually made an oral promise to pay the debt of an additional and plan to stop payment, consult an attorney first. If you arrangement to accept a promise to pay debt owed to you by a 3rd party, make certain you gain it in writing.
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