Which of the Following Is the Most Likely Result of Bruce's

question 40

Multiple Choice

Which of the following is the most likely result of Bruce's attempt to avoid his agreement to pay creditors of the estate out of his own pocket?

• A) He will be able to avoid the agreement because it was not in writing.
• B) He will be able to avoid the agreement because a promise to pay the debts of an estate would not come within the statute of frauds.
• C) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds, but the oral agreement Bruce made will likely be enforceable under the substantial-purpose rule.
• D) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds, but the oral agreement Bruce made will likely be enforceable under the main-purpose rule.
• E) A promise to pay debts of an estate out of an executor's own funds would come within the statute of frauds; but regardless of whether the debtors can establish reliance, the oral agreement Bruce made will likely be enforceable because he admitted he had agreed to pay.

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Definitions:

Overhead Applied

The amount of indirect costs allocated to goods and services based on a predetermined rate.