Billy (an adult) needs $20,000 as a down payment on a home m…
Billy (an adult) needs $20,000 as a down payment on a home mortgage. Larry agrees to loan Billy the $20,000, so long as Billy’s Mother GUARANTEES the debt. (In other words: so long as Billy’s Mother agrees to be the surety for Billy’s debt). In front of Larry, Billy’s Mother tells Billy, “I will pay your debt of $20,000 to Larry if you default on it.” Based on Billy’s Mother’s verbal statement, Larry loans the $20,000 to Billy. Billy makes no payments on the $20,000. Larry demands that Billy’s Mother pay the $20,000 debt based on her verbal Guaranty (Surety Agreement) with Billy. But, Billy’s Mother refuses to pay Larry. Larry sues Billy’s Mother to enforce her Guaranty (Surety Agreement). Which ONE of the following is the most likely outcome of that lawsuit, and why?