Mine & Smelter Supply Co. v. Stockgrowers' Bank

Citations

• 173 F. 859
• 98 C.C.A. 229
• 1909 U.S. App. LEXIS 5113

Syllabus

<p>1. Frauds, Statute of (§§ 17, 33*) — Promise to Answer for Debt of Another — Writing INDISPENSABLE UNLESS MAIN PURPOSE AND EFFECT ARE TO Benefit Promisor.</p> <p>(a) An agreement in writing, or some nolo or memorándum thereof, subscribed by the party to be charged, is indispensable to the validity of a promise (o answer for the debt, default, or miscarriage of another, where (lie chief object of the promisor is to guarantee the obligation of another, and the promisor derives no direct and substantial benefit therefrom.</p> <p>(b) But where the main purpose of the promisor is to serve his own interest and in consideration of his promise to answer for the debt, default, or miscarriage of another he secures for himself a direct and substantial beneih. his promise becomes his original obligation, which carries with it and sustains his incidental undertaking to answer for another’s debt, and it is valid without writing.</p> <p>[Ed. Note. — For other cases, see Frauds, Statute of, Cent. Dig. §§ 16, 53; Dec. Dig. §§ 17, 33.*]</p> <p>2. Frauds, Statute of (§ 16*) — Writing Unnecessary to Sustain Contract to Pay Promisor’s Debt by Paying His Creditor’s Debt.</p> <p>A promise to pay the debt of the promisor by paying his creditor’s debt to another is an original undertaking of the promisor, and no writing is requisite to support it.</p> <p>[Ed. Note. — For other cases, see Frauds, Statute of, Cent. Dig. §§ 22-26; Dec. Dig. § 16.*]</p> <p>8. Frauds, Statute op (§ 33*) — Consideration Necessary to Sustain Promise to Pay Another’s Debt.</p> <p>Loss to the promisee is a sufficient consideration for a promise in writing to answer for another’s debt.</p> <p>But a direct and substantial benefit to the promisor is indispensable to sustain such a promise, in the absence of writing.</p> <p>[Ed. Note. — for other cases, see Frauds, Statute of, Cent. Dig. §§ 50-53, 56; Dec. Dig. § 33.*]</p> <p>4. Frauds, Statute of (§§ 33, 106*) — Promise to Pay Another’s Debts— Facts — Conclusion. •<