Federal National Bank & Trust Co. of Shawnee v. Shanon Drilling, Inc.

HODGES, Justice.

The dispositive question is whether a pri- or oral agreement was admissible in evidence as a condition precedent to the effectiveness of certain written guaranty agreements. We answer in the affirmative.

Appellees David B. Levy, John Regina and Roy O. Dillard, Jr., (Guarantors) agreed to guarantee a $300,000 loan issued by appellant Federal National Bank & Trust Company of Shawnee (Bank) to defendant Shanon Drilling, Inc., a drilling company which is owned by defendant Jimmy W. Gray, for the purpose of buying a drilling rig. The Guarantors allege as consideration for their…