B is corrent because Wilson intended to discharge his debt owed to Security by the agreement he entered into with Glenn. Since Wilson and Glenn obviously intended Security to benefit from their agreement, Security is a creditor beneficiary with the right to recover against Glenn personally in the event of a default.
A is incorrect because the Statute of Frauds would apply since the agreement involves the sale of an interest in land. Also, Glenn’s promise would constitute a promise to answer for the debt of another. Consequently Glenn’s promise must be in writing.
C is incorrect because the fact that the buyer assumes personal liability on the mortgage does not release the seller, the original mortgagor. An assumption of the mortgage creates a surety relationship, with the buyer being the principal debtor and the seller acting as the surety. Wilson’s liability is terminated only when Security, the mortgagee, specifically releases Wilson or when Glenn pays the mortgage in full.
D is incorrect because an incidental beneficiary is a third party whom the contract was not intended to benefit. Wilson and Glenn did intend to benefit Security; therefore, Security is not an incidental beneficiary.
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