Amanda, a Recent University Graduate, Needed a Car to Get

question 57

True/False

Amanda, a recent university graduate, needed a car to get to her new job. To help Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda default. Ted's promise is enforceable as long as he goes to the bank, declares his promise to guarantee Amanda's loan in front of witnesses, and shakes hands on the deal, giving his word.

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Definitions:

Intoxicated Persons

Individuals whose cognitive and physical abilities are significantly impaired due to the consumption of alcohol or drugs.

Capacity

The legal ability and authority to enter into binding contracts and obligations.

Covenant Not to Compete

A legal agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.

Domesticated Cat

A feline companion animal that has been tamed and kept by humans as a pet or for catching vermin, distinguished from wild cats.