Auer v. Johnson

Plaintiff Auer commenced an action against each of the defendants on their respective promissory notes in the amount of $1,000 each, plus interest. The notes represented the unpaid balance of the purchase price of shares of stock of the Chas. Schott Machine Company, a Wisconsin corporation, not a party to this action.

The defendants owned a partnership known as Johnson Engineering Company. They had a prospect for a large order, but that particular client wanted them to do the manufacturing as well as the engineering thereon. Since they did not have a manufacturing plant, the defendants…