Gebrueder Heidemann, K.G. v. A.M.R. Corp.

BAKES, Justice.

Panworld, a Utah corporation and bicycle retailer, contracted to buy “between 5,000 to 8,000” bicycles from Heidemann, a German manufacturer. As consideration, Pan-world signed and accepted six “trade acceptances” which came due at various intervals between October 13,1974, and April 26, 1975. Defendant, A.M.R. Corporation, an Idaho corporation, did not sign or endorse the six trade acceptances, but in a collateral agreement A.M.R. guaranteed Pan world’s payment of the trade acceptances up to $250,000 by transferring into escrow a promissory note secured by a mortgage on…