New York Supreme Court July 2, 1891 (Eighmie v. Townsend)

Pratt, J.

It is a well-recognized rule that a promise to pay the pre-existing debt of a third person to the promisee is not within the statute of frauds if the substantial effect of its fulfillment will he to discharge the debt out of a fund furnished to the promisor by the debtor in contemplation of which the *465promise was made.