Defendants mortgaged their farm to plaintiff and later conveyed to one Ahart, who assumed the mortgage indebtedness. In a written extension agreement between all three parties it was provided that the defendants and Ahart should be jointly and severally liable for the debt. After foreclosure proceedings were started, Ahart and the plaintiff entered into a written contract by which the plaintiff agreed to release Ahart from all personal liability on the mortgage indebtedness in consideration of a deed to the farm. Thereafter the plaintiff sought a deficiency judgment against the defendants. Held, the defendants were not discharged from their personal liability by the agreement between the plaintiff and Ahart because it was not a release but rather a covenant not to sue. Federal Land Bank of Omaha v. Christiansen, (Iowa, 1941) 298 N. W. 641.
Michigan Law Review,
JOINT OBLIGATIONS- EFFECT OF RELEASE OR COVENANT NOT TO SUE,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol40/iss3/15