Shannon v. American Iron & Steel Mfg. Co.

Citations

• 66 Pa. Super. 211
• 1917 Pa. Super. LEXIS 228

Syllabus

<p>Principal and guaranty — Statute of frauds — Agreement to pay to materialmen for supplies.</p> <p>Where a corporation enters into a contract for the construction of an addition to a building, and after the work has progressed, the treasurer of the company orally states to a materialman furnishing supplies to the contractor “if there is anything new in the way of tools and machinery that he (the contractor) needs to complete the job, don’t hold him up; give it promptly, and we will see that you are paid,” the promise is an agreement to pay the debt of another and void under the Act of April 26, 1855, P. L. 308, if it appears that the goods furnished did not enter into the structure of the building, that they were bought without consultation with the company as to quantity, quality or price, that they had been charged to the contractor, that the materialman had attempted to collect from the contractor, but had failed, and that although the owner had paid a previous bill of the materialman, it had been for goods bought directly by the owner and charged to it.</p> <p>Not decided whether the treasurer could bind the corporation by such a promise.</p>