Guaranty Trust Co. v. Koehler

Citations

• 187 F. 192
• 1911 U.S. App. LEXIS 5389

Syllabus

<p>1. Guaranty (§ 4*) — Requisites—Construction oe Instrument.</p> <p>An agreement between defendants and others by their agents as parties of the first part and plaintiff as party of the second part recited that plaintiff had made advances, and agreed to make further advances, to enable defendants to bid for certain property which was to be sold at judicial sale, and provided that a stated part of such advances should be secured by a mortgage on the property “to be acquired,” and that when necessary powers of attorney were received the agreement should be supplemented by a formal mortgage; that the remainder of the sums advanced “shall be secured by the joint and several personal guaranty of said parties of the first part,” and be paid in installments as therein specified. Held, that such instrument was not in itself a contract of guaranty, and would not support an action at law to recover from defendants the sums so agreed to be guaranteed.</p> <p>[Ed. Note. — For other cases, see Guaranty, Dee. Dig. § 4.*]</p> <p>2. Guaranty (§ 18*) — Requisites and Validity — Co-Guarantors—Necessity That All Should be Bound.</p> <p>One of the parties to a contract of guaranty is not bound, unless all of the parties are bound who it was intended should be bound.</p> <p>[Ed. Note. — For other cases, see Guaranty, Dec. Dig. § 18.*]</p>