Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

another, C. However, the main purpose of l's promise was not to aid C but to get his own house repaired. This promise is not

image text in transcribed
image text in transcribed
image text in transcribed
another, C. However, the main purpose of l's promise was not to aid C but to get his own house repaired. This promise is not within the statute of frauds.'! CASE SUMMARY "I Personally Guarantee" Doesn't sen l'in Parsenally Liable, Does It? FACTS: Joel Burgower owned Material Partnerships Inc. After receiving the September 25th letter, MPI (MPI), which supplied Sacos Tubulares del Centro, S.A. de resumed shipping product to Sacos, sending additional C.V. (Sacos), a Mexican bag manufacturer, essential materials shipments valued at approximately $200,000. MPI subse- to make its products. When MPI was not paid for shipments, quently received one payment of approximately $60,000 it insisted that Jorge Lopez, Sacos's general manager, person from Sacos. When Sacos did not pay for the additional ally guarantee all past and future obligations to MPI. In a shipments, MPI stopped shipping to it. The Sacos plant letter to Burgower dated September 25, 1998, Lopez wrote: closed, and MPI brought suit in a Texas court against Lopez, claiming he was individually liable for the corporate L... want to certify you (sic) that I, personally, guar- debt of more than $900,000 under the terms of the per- anty all outstanding (sic) and liabilities of Sacos sonal guarantee. Lopez contended that he signed the letter Tubulares with Material Partnerships as well as in his capacity as general manager of Sacos as a corporate future shipments. guarantee and that it was not an enforceable personal guar- antee. MPI contended that the letter was a clear personal Lopez drafted the letter himself and signed it over the desig. guarantee. nation "Jorge Lopez Venture, General Manager." See Martin Printing, Inc. v. Sone, 873 A.2d 232 (Conn. App. 2005), in which James Kuhe, in writing, personally guaran teed Martin Printing, Inc., to pay for printing expenses of Pub Links Golfer Magazine, if his corporation, Abbey Inc. failed to do so. When Abbey, Inc., failed to pay, the court enforced Kuhe's promise to pay. See Christian v. Smith, 759 N.W.2d 447 (Neb. 2008). 296 PART 2: Contracts " Personally Guarantee" Doesn't Mean I'm Personally Liable, Does It continued DECISION: The essential terms of a guarantee agreement liabilities of Sacos," as well as "future shipments." Lopez's required by the statute of frauds were present in this case. signature over his corporate office does not render the docu- Lopez stated in his September 25th letter that "I, personally, ter that personally, ment ambiguous because the clear intent was expressed in guaranty," manifesting an intent to guarantee, and described the word "personally." (MPI 1. Jorge Lopes Ventura, 102 the obligation being guaranteed as "all outstandings and S.W.2d 252 (Tex. App. 2003)] Decision of Court (Outcome of Case) What was the reasoning of the court? How did the court arrive at the decision? another, C. However, the main purpose of l's promise was not to aid C but to get his own house repaired. This promise is not within the statute of frauds.'! CASE SUMMARY "I Personally Guarantee" Doesn't sen l'in Parsenally Liable, Does It? FACTS: Joel Burgower owned Material Partnerships Inc. After receiving the September 25th letter, MPI (MPI), which supplied Sacos Tubulares del Centro, S.A. de resumed shipping product to Sacos, sending additional C.V. (Sacos), a Mexican bag manufacturer, essential materials shipments valued at approximately $200,000. MPI subse- to make its products. When MPI was not paid for shipments, quently received one payment of approximately $60,000 it insisted that Jorge Lopez, Sacos's general manager, person from Sacos. When Sacos did not pay for the additional ally guarantee all past and future obligations to MPI. In a shipments, MPI stopped shipping to it. The Sacos plant letter to Burgower dated September 25, 1998, Lopez wrote: closed, and MPI brought suit in a Texas court against Lopez, claiming he was individually liable for the corporate L... want to certify you (sic) that I, personally, guar- debt of more than $900,000 under the terms of the per- anty all outstanding (sic) and liabilities of Sacos sonal guarantee. Lopez contended that he signed the letter Tubulares with Material Partnerships as well as in his capacity as general manager of Sacos as a corporate future shipments. guarantee and that it was not an enforceable personal guar- antee. MPI contended that the letter was a clear personal Lopez drafted the letter himself and signed it over the desig. guarantee. nation "Jorge Lopez Venture, General Manager." See Martin Printing, Inc. v. Sone, 873 A.2d 232 (Conn. App. 2005), in which James Kuhe, in writing, personally guaran teed Martin Printing, Inc., to pay for printing expenses of Pub Links Golfer Magazine, if his corporation, Abbey Inc. failed to do so. When Abbey, Inc., failed to pay, the court enforced Kuhe's promise to pay. See Christian v. Smith, 759 N.W.2d 447 (Neb. 2008). 296 PART 2: Contracts " Personally Guarantee" Doesn't Mean I'm Personally Liable, Does It continued DECISION: The essential terms of a guarantee agreement liabilities of Sacos," as well as "future shipments." Lopez's required by the statute of frauds were present in this case. signature over his corporate office does not render the docu- Lopez stated in his September 25th letter that "I, personally, ter that personally, ment ambiguous because the clear intent was expressed in guaranty," manifesting an intent to guarantee, and described the word "personally." (MPI 1. Jorge Lopes Ventura, 102 the obligation being guaranteed as "all outstandings and S.W.2d 252 (Tex. App. 2003)] Decision of Court (Outcome of Case) What was the reasoning of the court? How did the court arrive at the decision

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

1st Edition

1938910222, 9781938910227

More Books

Students also viewed these Accounting questions

Question

State the uses of job description.

Answered: 1 week ago

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago

Question

Understand some techniques for evaluating the HRM function

Answered: 1 week ago