SURETYSHIP-DISCHARGE OF GUARANTY BY PAYMENT OF AMOUNT TO WHICH LIABILITY IS LIMITED

Authors

Abstract

Defendant wrote a letter to plaintiff, "Kindly extend credit to A for materials to the amount of $250, and I hereby become security for the same." Relying on this letter, plaintiff for several years sold goods to A. By reason of A's defaults, defendant paid plaintiff $71.80 on one occasion and $197.10 on another. Later, A became indebted to plaintiff to the amount of $464.22 and this action was brought to recover on the guaranty the sum of $250. The court construed the guaranty as a continuing one, but held that that fact did not impose a continuing liability on the defendant after he had paid the full amount of the guaranty, but that by such payment he was discharged from any further obligation. Monmouth Plumbing Supply Co. v. McDonald (N. J. 1929) 147 AtI. 627.

Recommended Citation

SURETYSHIP-DISCHARGE OF GUARANTY BY PAYMENT OF AMOUNT TO WHICH LIABILITY IS LIMITED, 29 Mich. L. Rev. 388 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss3/36