Oral guarantee of another's debt (Statute of Frauds 1677 s.4)

Section 4 of the Statute of Frauds 1677 provides that no action shall be brought to charge a defendant upon any special promise to answer for the debt, default or miscarriage of another person unless the agreement, or some memorandum or note of it, is in writing and signed by the party to be charged or by someone lawfully authorised by him. Ahmed's promise was that he would pay if the company did not. That is a guarantee: a secondary promise to answer for Mill Lane's debt, which remained the company's own primary liability. Nothing was written or signed, so Kestrel cannot bring an action on the promise against Ahmed, however clear the evidence of what he said. The formality requirement applies even though Ahmed, as a director, had an interest in the company continuing to receive supplies.

Why A is wrong: The general rule that contracts need no form is subject to statutory exceptions, and s.4 is one of them for guarantees.

Why B is wrong: A personal interest in the debtor's business does not take a promise to answer for the company's debt outside s.4.

Why D is wrong: Section 4 requires a signed writing or note, not a deed; a signed guarantee under hand would be enforceable.

Why E is wrong: Oral evidence of the promise does not satisfy s.4, which requires a written agreement or note signed by the guarantor or his agent.