Riley v. Kahan
Riley v. Kahan
Opinion of the Court
Opinion by
This is an action brought to recover an amount due for lumber sold to Goldman, a contractor, and delivered at the property owned by the defendant. The statement of claim avers an oral undertaking of the defendant to pay for the lumber so delivered. The defendant resists this claim and contends that the promise, if made, is within the Act of April 26,1855,. P. L. 308. The defend
The plaintiff procured an order from Goldman, addressed to Cadwalader, directing him to pay to the plaintiff on account of the materials furnished. Accompanying the order were the bills made out to Goldman. While it has been, held that a promise to pay the debt of another is not within the statute of frauds, where the promisor has money or property of the debtor placed in his hands for the purpose of such payment, or where in any other way an agency or trust arises which involves a duty to pay (Howes v. McCrea, 21 Pa. Superior Ct. 592; Delp v. Bartholomay Brewing Co., 123 Pa. 42; Justice v. Tail-man, 86 Pa. 147; Stoudt v. Hine, .45 Pa. 30), this suit is not on Cadwalader’s promise, and the acceptance of any order by Cadwalader would not bind Kahan beyond the money deposited. The payment to the appellant of
The judgment of the court below is affirmed.
Reference
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- Principal and surely — Building maternal — Act of April 26,1855, P. L. 808. While no rule can be easily expressed by which to determine in all cases whether a promise to be responsible for the debt or liability of another is or is not within the statute it is a general rule that when the leading object of the promise is to become guarantor or surety for a debt for which a third party is and continues to be primarily liable, the agreement, whether made before or after or at the time of the promise of the principal, is within the statute and of no effect unless in writing. Where a liability is to be incurred on the strength of an oral promise, and it does not appear from all the facts entering into the transaction that it was the intention of the promisor to create an original undertaking by him, he cannot be made liable by reason of the statute on such promise. An owner in a building contract deposited a sum of money with a stakeholder under an agreement by which the money was to be paid to the contractor upon a written statement of the owner that the work was duly completed. A materialman asked the owner whether he would be responsible for material furnished to the contractor. The owner told him of the deposit and said that if he would get a written order from the contractor on the stakeholder, that he, the owner, would see that the materialman would get his money. The order was secured and the material furnished, and charged to the contractor alone. A partial payment was made by the stakeholder-to the materialman. Held, (1) that the promise of the owner wa's an oral one within the Act of April 26, 1855, and (2) that the owner was not liable to the materialman either by reason of the partial payment, or by reason of any act of the stakeholder.