John Wanamaker v. Shoemaker

Citations

• 70 Pa. Super. 473
• 1918 Pa. Super. LEXIS 279

Syllabus

<p>Principal and surety — Partnership—Corporation—Assignment of contract to corporation.</p> <p>Where a contract of suretyship between a partnership “as now constituted or hereafter formed” provides for the guarantee of the monthly accounts of a customer of the partnership until the agreement is revoked, and it appears that twelve years thereafter the business of the partnership is incorporated under the. same name, and two years after that the contract of suretyship is assigned to the corporation without .any knowledge on the part of the sureties of the existence of the corporation and the assignment, the sureties cannot be held liable to the corporation for goods sold to the customer six years after the assignment.</p> <p>In such a case when the partnership ceased to do business, the liability of the sureties reached its limit, and it was not within the power of the partnership to extend the duration of that liability by assigning the contract to a corporation, no matter by what name that corporation might be called.</p>