Gelco IVM Leasing Co. v. Alger

This is an action on a contract of guaranty. At the conclusion of plaintiff’s case, the trial court granted the guarantor-defendants’ challenge to the sufficiency of the evidence. The plaintiff, Gelco IVM Leasing Company, appeals from a dismissal of its cause of action. The principal issue raised on appeal is whether or not the contract of guaranty was supported by consideration. We affirm the dismissal.

The defendants (guarantors) were shareholders in Proma Corporation, which is now bankrupt. On January 23, 1968, Proma entered into a 5-year lease agreement with Gelco, involving a piece of…