Horstmann Co. v. Waterman

Citations

• 103 Wash. 18
• 173 P. 733
• 1 A.L.R. 856
• 1918 Wash. LEXIS 1009

Syllabus

<p>Guaranty — Contracts—Liability to Third Persons — Want oe Privity. While the seller of corporate stock, who retained a portion of the assets and agreed with the buyer and the corporation to pay all the debts of the corporation, was concededly liable directly to the creditors, a guaranty contract whereby a third person agreed with the corporation and the buyer to guarantee the seller’s performance of his agreement does not render the guarantor liable to the creditors, although they are indirectly interested in its performance; since the guaranty was intended only for the benefit of the promisees, and there was no privity with creditors, and the doctrine of liability without privity is not to be extended to new and doubtful cases.</p>