Arbuckles & Co. v. Chadwick

Citations

• 146 Pa. 393
• 23 A. 346
• 1892 Pa. LEXIS 1237

Syllabus

<p>(а) The defendant agreed in writing to-be responsible to plaintiffs for all goods sold by them to a co-operative association, incorporated under the act of June 7,1887, P. L. 365. Section 8 of said act prohibits the giving of credit to such an association, under a forfeiture of the credit thus iB legally given.</p> <p>(б) After said guaranty, sales to the association were made by the plaintiffs, on the faith of it. And payments were made by the defendant, but out of funds belonging to the association; which payments were applied by the plaintiffs upon an account for goods sold on credit to the association prior to the guaranty :</p> <p>1. In such case, the defendant having made the payments, not out of his own funds but out of the funds of the association and without direction as to their application, he could not set up a misapplication of such payments by the plaintiffs, in a suit to recover for the goods sold on the faith of his guaranty.</p>