H. D. Dougherty & Co. v. Bash

Citations

• 167 Pa. 429
• 31 A. 729
• 1895 Pa. LEXIS 924

Syllabus

<p>Statute of Frauds — Guaranty—Parol agreement to discount notes.</p> <p>Under a parol agreement, plaintiffs were to continue to sell goods to certain of their customers and obtain from them all the cash they could, and take their notes for the balance due upon each month’s settlement, and ‘ ‘ defendant would discount said notes for plaintiffs without recourse.” There was nothing said about the original debt being extinguished by the giving of the notes. Held, that the agreement was within the statute of frauds, and could not be enforced.</p> <p>The promise of the defendant was in reality a promise to pay the debt of another without any acquisition of property as a consideration therefor, and without the presence of any exceptional circumstances which would prevent the application of the statute.</p> <p>Promissory notes — Note as extinguishment of the original debt.</p> <p>The mere taking of the debtor’s note by a creditor for a debt contracted for goods sold, does not extinguish the debt unless it is specially agreed that the note should be taken as- payment of the debt.</p>