United Factors v. T. C. Associates, Inc.

CALLISTER, Justice:

T. C. Associates, Inc., the corporate defendant, was engaged in the furniture business; two of its officers, Herscovitz and XJlmer, executed, as individuals, a guarantee, agreement with United Factors, plaintiff, in order to procure an extension of credit to the corporation. Subsequently, the defendant corporation purchased merchandise from Bailey-Schmitz and Evans and Black Carpet Mills, who assigned their accounts receivable to plaintiff. The corporate defendant became delinquent in its payments of these accounts, and plaintiff commenced this action against the debtor and…