Abigail Agrees to Clear Adam's Debt with the Bank If

question 20

Multiple Choice

Abigail agrees to clear Adam's debt with the bank if he is unable to pay it. Which of the following is true of this scenario?

• A) This agreement is not within the statute of frauds.
• B) Abigail has primary liability to the bank.
• C) Under the statute of frauds, this contract must be in writing.
• D) Adam is not liable to the bank in any way.

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Definitions:

Piece Rate

A wage calculation method where an employee is paid a fixed rate for each unit produced or action performed.

Compensation

Refers to the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

Time-Based

Relating to, measuring, or measured by the passage of time, often used in contexts like billing, scheduling, or productivity analysis.

Skill-Based

Pertaining to or focusing on the acquisition and application of practical competencies and proficiencies.