Clonts v. Associated Distributors, Inc.

Pannell, Presiding Judge.

Thomas J. Northcutt, Inc., whose president and majority stockholder was Thomas J. Northcutt, sold some five building lots to Franklin Road Corp., of which Thomas J. Northcutt was an officer and principal stockholder. Franklin Road Corp., thereafter, entered into an agreement with C. B. Clonts to build houses on the lots. Clonts, knowing that Franklin Road had no credit, agreed to use his own credit for the purchase of building materials. At the same time Clonts also was buying materials from appellee for use on other projects where he was a contractor. Franklin Road…