Peacock Coal Co. v. Gaines Coal Co.

Plaintiff sold and delivered to the defendant Gaines Coal Company certain quantities of coal for which payment has not been made. There is no dispute about this. Is defendant Israel liable for the payment?

On the factual side it is shown that, about November 1, 1925, E. M. Gaines, under the trade name of E. M. Gaines Coal Company, was conducting a retail coal business on East Court Avenue, Des Moines, Iowa, and that appellant Israel entered into negotiations with Gaines to purchase an interest in said business. Israel did advance Gaines $1,000, and for security took an assignment of certain…