Home > Journals > Michigan Law Review > MLR > Volume 41 > Issue 5 (1943)
CONTRACTS - RIGHT OF PROMISEE OF A CREDITOR-BENEFICIARY CONTRACT TO SUE IN EQUITY FOR EXONERATION
The defendant purchased a barber shop and beauty parlor business from the plaintiff; and as part of the contract, the defendant assumed an indebtedness owing to a third person by the plaintiff. In an action brought by the creditor against the present plaintiff and defendant, judgment was rendered against the plaintiff herein and the action was dismissed as to the defendant. In that action, the present plaintiff filed a cross-petition against the defendant in this case, to require her to perform her alleged oral agreement to assume outstanding obligations, and moved to transfer the cross-petition to equity. Trial on the cross-petition and answer was had in equity and decree in favor of the plaintiff was entered. From this the defendant appealed. Held, that by assuming the indebtedness, the buyer became the principal and the seller the surety, and that the seller could sue in equity to compel the buyer to pay the debt. Judgment affirmed. McKey Fansher Co v. Rowen, (Iowa, 1942) 5 N. W. (2d) 911.
Mary J. Morris,
CONTRACTS - RIGHT OF PROMISEE OF A CREDITOR-BENEFICIARY CONTRACT TO SUE IN EQUITY FOR EXONERATION,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol41/iss5/17