Follmer v. Dale
Follmer v. Dale
Opinion of the Court
(after stating the case.) — It is objected that the plaintiff cannot recover on this title, because in that view of the agreement it is a parol contract, and as such comes within the statute of frauds. To this, however, it is answered, that although by parol, yet it is an executory contract, and that the contract has been executed. Follmer agreed to pay the purchase-money to Dale. He was the principal debtor, and without his engagement to pay, Garman would not have agreed to pay, nor would Dale have agreed to sell, as it was well known to both that Garman was unable to comply with the terms of the contract. In pursuance of the agreement, Garman took possession of the property, or continued to enjoy it as his own; received a deed from Dale, and it was afterwards sold by the sheriff for the payment of the debt. This is such a part execution of the contract as to take the case out of the statute, and comes directly within a class of cases so well known that it would be superfluous to cite them. To enable Follmer to cut himself loose from the contract would encourage, not prevent fraud. Next, as to the guarantee. On this part of the case, we think the answer of the court was as favourable as the defendant had any reason to expect. The court instructed the jury that there was a difference between a surety and a guaranty. In the case of a surety, if the time of payment be postponed against the principal debtor, without the assent of the surety, as if the creditor gave an extension of credit beyond the time mentioned in the contract, the surety will be discharged. But in the case of a guaranty, which is collateral to the agreement of the creditor, if the evidence satisfy the jury that no injury has been sustained’ by the guarantee, or that the obligee, for whom the guaranty was made, was insolvent and unable to pay at the time the guaranty was made, and continued so afterwards, a mere extension of time of payment would not discharge the persons making the guaranty, that the giving time, as in the present case, would not prevent the recovery of the plaintiff. The first part of the error assigned in relation to the surety is in accordance with the case of Clippinger v. Creps, 2 W. 47. This is conceded, but the answer is said to be wrong as to the guaranty. But that there is a difference between a surety and the case of a collateral undertaking to guaranty the payment of a debt, is shown by the case of Norton v. Eastman, 4 Greenl. 521; Terrell v. Smith,
We are further of the opinion, that although the first point is not answered in its exact terms, yet that it is substantially answered, and that the cause was put to the jury on its true grounds.
Judgment affirmed.
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