Ropes, Inc. v. Rubinstein

Defendants, who are copartners engaged in the business of financing canneries and fisheries, entered into a contract March 5, 1938, with Suryan’s, Incorporated, a domestic corporation, under the terms of which defendants agreed to lend money to Suryan’s to assist the latter in its fishing operations for the 1938 season. At that time, Suryan’s was indebted to a certain Seattle bank in the amount of twenty-five thousand dollars, payment of which was secured by a first mortgage on the borrower’s boats and floating equipment.

The first type of loan by defendants to Suryan’s under the agreement…