Setac Corp. v. W. P. Stephens Lumber Co.

Pope, Judge.

In July of 1977 Setae Corporation (Setae), a construction company formerly in the business of building homes, applied to W. P. Stephens Lumber Company (Stephens) for credit in order to purchase building supplies. Stephens requested the president and sole shareholder of Setae, appellant Ronald K. Cates, to execute a personal guaranty for all debts which Setae was expected to incur. This document, which was executed on July 6,1977, was unrestricted as to scope, time and amount and has never been cancelled. A credit line of $5,000 was established for Setae’s purchases. Purchases were…