Bank of Lemoore v. Gulart

Citations

• 6 Cal. Unrep. 165
• 54 P. 1111
• 1898 Cal. LEXIS 1053

Syllabus

<p>Guaranty.—E. Agreed in Writing With B. to Pay a Note of B. and G. out of the proceeds of sheep mortgaged to B. by G. B. telephoned the payee that he had agreed to pay the note, and asked for thirty days’ extension, which was granted on consideration of his promise. He sold the sheep, and shortly after “guaranteed full payment,” and asked for another extension, and subsequently paid some interest. The sheep were attached in an action against G., and, to secure the release, B. paid the attachment debt, after deducting which, and expenses, the proceeds of the sheep were insufficient to pay the note. Held, that B. had obligated himself unconditionally to pay the note in full, and had not limited his liability to the proceeds remaining after all claims against the principal were satisfied.</p> <p>Guaranty.—Where a Person Who Agreed to Pay Another’s Note, which was payable to a bank, telephoned the cashier that he had agreed to pay it, and thereby secured an extension, the bank’s acceptance of the new agreement is inferred.</p> <p>Guaranty.—An Agreement of the Maker of a Note, Restricting the liability of one who had promised to pay it, is ineffectual, as against the payee, where it was made after the payee had accepted the promise.</p>