Commercial Bank of Albany v. Eddy
Commercial Bank of Albany v. Eddy
Opinion of the Court
On this case the question is, whether the plaintiffs can apply this guaranty so as to charge the defendant^ for the amount of the two securities bearing the name of Eddy & Ames, and discounted, one at the request and for the benefit of Messrs. Townsend, and the other of Messrs. Faige and Cassidy.
The paper in question, or letter of guaranty, was delivered by the defendants to Eddy & Ames, to be used at their pleasure, and with authority to deliver it; but until that authority was executed by them, and it was in fact delivered to the plaintiffs and accepted by them, it was a proposal only,
It appears to us, that as it was competent for Eddy & Ames to use this instrument or not, at their pleasure, so it was competent for them to restrict and limit the operation of it to any one of the purposes expressed in it, or to any number, less than the whole, of the objects and purposes included in the general terms of the guaranty. Eddy & Ames might have strong motives and direct interests, so to limit the operation of the guaranty ; and having a power to refuse and decline delivering it on other terms, if the plaintiffs consented to accept it upon such terms, they were bound by them. This, we think, does not impugn the maxim, that the terms of a written contract are not to be controlled or varied by parol evidence. Here, the delivery of the instrument was an act distinct from the making and execution of it, done at a distinct time, by an agent; and such act was necessary to give it effect. Such act of delivery and acceptance, and the circumstances attending it, we think may be proved by parol evidence.
But if the maxim were applicable, this case would hardly come within it, because the terms, on which the guaranty was delivered to the plaintiffs, were expressed in writing by the letter of Eddy & Ames, accompanying it and delivered with it. This paper was made by them, at the suggestion of the cashier, in order that the purpose might be definitely expressed. It is always competent to introduce parol evidence, to show, when a particular object — whether an instrument, a parcel of land, or an article of personal property — is alluded to in a written instrument, that a particular thing, falling within the general terms, was intended; in other words, to identify the subject matter referred to. According to this rule, it was competent to show, by parol evidence, that the contract of Nathaniel and William S. Eddy, mentioned in Eddy & Ames’s letter, was the same instrument now relied upon as a general guaranty; and this was
Judgment on the verdict.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.