Sedalia, Warsaw & Southern Railway Co. v. Smith
Missouri Court of Appeals
Appeal from Pettis Circuit Court, Hon. John P„ Strother, Judge. Statement of case by the court. This was an action on a written contract against the defendant as one of sixty-two parties who had executed, it.
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Appeal from Pettis Circuit Court, Hon. John P„ Strother, Judge. Statement of case by the court. This was an action on a written contract against the defendant as one of sixty-two parties who had executed, it. The contract was as follows: “Sedalia, Mo., September 29, 1879. “We, the undersigned, hereby guarantee to theSedalia, Warsaw & Southern Railway Company that the sum of fifty-five thousand dollars shall be paid to-said company out of the subscriptions to the stock of said company, made in Pettis county, and agree that we-will severally pay to said company our pro-rata part of any deficit…
1Opinion of the CourtHall, J.
The general rule is, wherever there is no principal there is no guarantor, and that, whatever entirely avoids the obligation of the principal, releases *378the guarantor. Brandt on Suretyship and Guaranty, sect. 121. Under this rule a guarantor may not interpose those exceptions which are personal to the principal, but he has the right to interpose all which are inherent to the debt. Id., and cases cited. This rule results from the form of the contract of guaranty, which “is a collateral engagement for another, as distinguished from an original and direct engagement for the party’s own act.”…
Also in this document: Concurrence.
2Cases cited4 opinions
- McLaughlin v. McGovernNew York Supreme Court · 1861
- Allen v. Central Savings-BankMissouri Court of Appeals · 1877
- Vroman v. DeweyWisconsin Supreme Court · 1867
- Eddy & Co. v. SturgeonSupreme Court of Missouri · 1851
3Cited by4 opinions
- Tandy v. Elmore-Cooper Live Stock Commission Co.Missouri Court of Appeals · 1905
- Acord v. St. Louis Southwestern Railway Co.Missouri Court of Appeals · 1905
- Fellows v. KreutzMissouri Court of Appeals · 1915
- Nelson v. HinchmanCourt of Appeals for the Eighth Circuit · 1902