An original promise is a commitment made by one party to take responsibility for the debt of another party. This promise is typically made to support the interests of the person making the promise and is based on a consideration that benefits them. Importantly, the original promise occurs before or at the time the debt is created, which is when credit is extended to the debtor.
Original promises are commonly encountered in various legal contexts, particularly in contract law. They are relevant in situations involving loans, guarantees, and other financial agreements. Understanding how an original promise operates can help individuals navigate their responsibilities, especially when dealing with debts or financial obligations. Users can manage these situations effectively with the right tools, such as legal templates available through US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A parent agrees to pay their child's student loan if the child defaults. This agreement is an original promise since it is made to support the child's financial needs.
Example 2: A business owner promises to pay for a supplier's goods on behalf of a new startup. This promise helps the startup secure necessary supplies and is made before the debt is incurred. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | Generally recognizes original promises as enforceable without written documentation. |
| New York | Requires clear evidence of the promise to enforce it in court. |
| Texas | Similar to California, but specific conditions may apply regarding the benefit to the promisor. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition |
|---|---|
| Guarantee | A promise to take responsibility for another's debt, typically requiring a written agreement. |
| Suretyship | A legal arrangement where one party agrees to be responsible for another's debt or obligation. |
| Collateral | Assets pledged as security for a loan, which can be claimed if the loan is not repaid. |
If you find yourself in a situation involving an original promise, consider the following steps:
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