Kate takes her friends Allie and Irene to a restaurant. When
Kate wants to pay, she discovers that she does not have her purse
with her. Allie agrees to pay the bill, but she suspects that Kate
will not repay her. Allie, therefore, asks Irene if she will bind
herself as surety for Kate’s debt. Irene agrees by nodding her
head.
Which ONE of the following statements
regarding the validity of the agreement between Irene and Allie
is CORRECT?
a.
The agreement is void because it is contrary to good morals.
b.
The agreement is void because formalities have not been complied with.
c.
A valid contract has been concluded.
d.
The agreement is void due to a lack of consensus.