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Promisor Liability

Definition

When a promisor agrees to pay a certain sum of money to a third party to whom the promisee says he is indebted, the promisor is liable for this sum regardless of the actual indebtedness of the promisee to the third party. In contrast, when a promisor makes a promise to discharge whatever general liabilities the promisee is under, the promisor may escape liability by showing that the promisee was under no enforceable liability. Finally, one who promises to make a payment to the promisee’s creditor can assert against the creditor any defense that the promisor could assert against the promisee.

Related Rules [?]