“A promise to pay the debt of another is barred by the Statute of Frauds unless it is in writing.” —Murdock, Judge 

Facts Glenn A. Page (Glenn) had a long-term friendship with Jerry Sellers, an owner of Gulf Coast Motors. Glenn began borrowing money from Gulf Coast Motors on a recurring basis during a two-year period. There was no evidence as to what Glenn used the loan proceeds for, but evidence showed that he had a gambling problem. Sellers testified that toward the end of the twoyear period of making loans to Glenn, he telephoned Mary R. Page, Glenn’s wife, and Mary orally guaranteed to repay Glenn’s loans. Mary had significant assets of her own. Mary denied that she had promised to pay any of Glenn’s debt, and she denied that Sellers had asked her to pay Glenn’s debt. Gulf Coast Motors sued Glenn and Mary to recover payment for the unpaid loans. The trial court entered judgment in the amount of $23,020 in favor of Gulf Coast Motors. Mary appealed. 

Issue Was Mary’s alleged oral promise to guarantee her husband’s debts an enforceable guaranty contract? 

Language of the Court A promise to pay the debt of another is barred by the Statute of Frauds unless it is in writing. Mary’s alleged oral promises are not enforceable under the Statute of Frauds. We conclude that Mary’s alleged promises to guaranty or repay Glenn’s debts were within the Statute of Frauds and, therefore, were not enforceable. 

Decision The court of civil appeals held that Mary’s alleged oral promises to guarantee her husband’s debts were not in writing, as required by the Statute of Frauds. The court remanded the case to the trial court to enter judgment in Mary’s favor. 

Ethics Questions: What is the public policy for requiring guaranty contracts to be in writing? Did Mary act ethically if she made the oral guaranty promise and did not honor the promise?