136 Iowa 218 | Iowa | 1907
The facts necessary to an understanding of the controversy in this ease as gathered from the statements of counsel are as follows: The Pattee-Sutherland Company was a corporation engaged in business in the city of Des Moines, and, wishing to purchase goods on credit from
The appellant contends that the guaranty was an absolute and unconditional one, and that the defendant is still liable thereto, notwithstanding the agreed facts. Conceding for the purposes of this case that the guaranty was absolute and unconditional, we are still unable to agree with the latter part of the appellant’s proposition. It is a well and generally recognized principle of estoppel in pais that if in the transaction itself which is in dispute a party has by his neg
Appellant urges, however, that a showing of the insolvency of the Pattee-Sutherland Company is not sufficient to relieve the defendant from liability; that he must go further, and show that he would have acted before the company became insolvent had he known the true conditions. A showing of actual insolvency when the demand on him was made was, we think, sufficient. It may safely be presumed that he would have taken steps to protect his own financial interests had he been called upon to pay the company’s debts. The judgment is right, and it is affirmed.