Bandit Industries, Inc. v. Hobbs International, Inc.

AFTER REMAND

The plaintiff and defendant corporations transacted business with each other. When the latter failed to keep its account current, the plaintiff sought further assurance. The response was treated by the circuit court as a personal guarantee from the president of the defendant corporation. The Court of Appeals twice affirmed, but we reverse. A personal guarantee for the debt of another can arise only where such an intent is clearly manifested.

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Plaintiff Bandit Industries, Inc., manufactures wood chipping equipment in Remus, Michigan. Among its dealers was defendant Hobbs…