Business Law question?

Question

Please help me with this business law contract question:

Thanks

Rafferty was the principal shareholder in Continental Corporation, and, as a result, he received the lion's share of Continnental Corporation's dividends. Continental Corporation was anxious to close an important deal for iron ore products to use in its business. A written contract was on the desk of Stage Corporation for sale of the iron ore to Continental Corporation. Stage Corporation, however, was cautious about signing the contract, and it did not sign until Rafferty called Stage Corporation on the telephone and stated that if Continental Corporation did not pay for the ore, he would pay. Business reversals struck Continental Corporation, and it failed. Stage Corporation sued Rafferty. What defense, if any has Rafferty?

Answer 1

You would have to provide more information in order for this question to be answered properly, most importantly the legal documents would have to be reviewed.  Rafferty made a phone call which was the basis of the deal but from the information provided he did not sign any documents. My boss loves where the other party only has a verbal contract and says Verbal contracts aren''t worth the paper they''re printed on." They are extermely difficult to regulate although law do exist.