Page V. Gulf Coast Motors Essay

633 WordsAug 6, 20133 Pages
Case 14.2 – Page v. Gulf Coast Motors Parties Plaintiff: Gulf Coast Motors (The Company) Defendant: Glenn A. Page and Mary R. Page Glen A Page and Jerry Sellers, the owner of Gulf Coast were friends. Facts Glenn A. Page was friend for a long time of Jerry Sellers, an owner of Gulf Coast Motors. Glenn began borrowing money from Gulf Coast Motors on a regular basis for two years. There was no formal loan process. Glenn would sign a ledger where it was written “I agree to pay Jerry Sellers as above”. Glenn made some small payments towards his account attempting to reduce or pay the balance. At the time the money was borrowed Glenn was not working so he had not assets in his own name. Gathered evidence showed that Glenn had a…show more content…
A guaranty contract is a document made during an issuance of a loan in which a third party agrees to become liable to make required payments if the main person responsible for the loan fails to make payments. Did Glenn Act ethically in this case? Glenn did not act ethically in this case. First of all the money that Glenn borrowed from his friend was used for gambling, this was absolutely unethical and unacceptable. In addition Glenn signed a ledger note agreeing to pay the loan and he failed to do so. Would Mary have acted unethically if she had actually orally guaranteed to repay her husband's debts and then raised the Statute of Frauds to prevent enforcement of the oral promises? Mary did not act unethically since she had not raised the Statute of Fraud to stop any enforcement of her oral promises; she indeed made oral promises however never appealed to the statute of fraud for them to be enforced. Conclusions My conclusion is that even though the Statute of Fraud applies in cases of guarantee agreements a guaranty should never be accepted unless it is put in writing, this is a good practice to follow to avoid ending up in a case like the one discussed here. REFERENCES Cheeseman, H. Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed). Pearson Learning Solutions. Retrieved from

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