45 Ga. App. 808 | Ga. Ct. App. | 1932
1. Where by contract a guarantor obligates himself to a person furnishing goods and merchandise from time to time to another, to pay therefor “to the extent of $5000,” and where by the terms of the contract of guaranty the person so furnishing the goods and merchandise could modify the credit terms without notice to the guarantor, the contract did not bind the opposite party thereto to extend credit to the extent of $5000, but only limited the guarantor’s liability to that extent. In a suit by the seller against the guarantor, to recover upon such a contract of guaranty, it was no defense that the seller failed to extend credit to the extent of $5000.
2. Where the only consideration of a written contract, as expressed in the
3. Where, after the execution of the contract of guaranty, the opposite party to the contract promised to give the guarantor a position of employment if the guarantor would take possession of the goods and merchandise which the opposite party to the contract had sold and delivered to the party whose debt had been guaranteed, which goods had not been paid for, and to sell the goods and apply the proceeds upon the indebtedness which the guarantor had guaranteed, and thus reduce the guarantor’s loss, and where no promise or undertaking was made by. the guarantor, there was no consideration for the opposite party’s promise, and a refusal and failure of the opposite party to permit the guarantor to do this constituted no breach of contract.
4. Under the ruling in paragraph 2 above, the court erred in sustaining the demurrer to the defendant’s plea which set up the defense there indicated.
5. The court having erred in sustaining the demurrer to the defendant’s plea, the subsequent proceedings, which resulted in a verdict and judgment for the plaintiff, were nugatory.
Judgment reversed.