Mountain States Telephone and Telegraph v. Lee

McQUADE, Chief Justice.

This action relates to the enforceability of a guarantee contract, such type of contract having been held valid in Idaho. 1 A “guarantee contract” is a contract of an assurance by a “guarantor” for payment of a debt, or the performance of a duty, or contract by another person. 2

In February of 1969, Lee Pontiac, Inc., dba Trans Magic Airlines, was operating a business known as Trans Magic Airlines. On February 10, 1969, Ross C. Lee, president of Lee Pontiac, Inc., located in Jerome, Idaho, as an individual signed a continuing guarantee agreement for payment of the “Trans…