Appliance & Heating Supply, Inc. v. Telaroli

The plaintiff, an Idaho corporation, sold appliances to the Telco Co., a Utah corporation. The latter had established a line of credit with the former. The defendant, Telaroli, was the president and sole owner of Telco. In 1979 Telco entered into a construction contract that called for a substantial increase in purchases from plaintiff. To secure the account, the plaintiff through its representative approached Tela-roli with an agreement.

The first paragraph of the agreement called for payment on the tenth of the month, failing which, the signatory agreed to pay the amount due plus invoiced…