Page V. Gulf Coast Motors
Case 14.2 – Page v. Gulf Coast Motors
Parties
Plaintiff: Gulf Coast Motors (The Company)
Defendant: Glenn A. Page and Mary R. Page
Glen A Page and Jerry Sellers, the owner of Gulf Coast were friends.
Facts
Glenn A. Page was friend for a long time of Jerry Sellers, an owner of Gulf Coast Motors. Glenn began borrowing money from Gulf Coast Motors on a regular basis for two years. There was no formal loan process. Glenn would sign a ledger where it was written “I agree to pay Jerry Sellers as above”. Glenn made some small payments towards his account attempting to reduce or pay the balance. At the time the money was borrowed Glenn was not working so he had not assets in his own name. Gathered evidence showed that Glenn had a gambling issue. Sellers testified that at the end of the two year period, Mary R. Page, Glenn’s wife orally guaranteed to repay Glenn’s loans. Mary on the contrary had significant assets of her own. Mary denied that she had promised to pay Glenn’s debt. Gulf Coast Motors sued Glenn and his wife Mary to recover payment for the unpaid loans. (Cheeseman, H. Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed). Pearson Learning Solutions)
Procedure
The Court ruled in favor of Gulf Coast Motor entering a judgment in the amount of $23.020. Mary appealed.
Issue
The issue here turns into a simple question: was Mary’s oral promise to guarantee Glenn’s debts an enforceable contract?
Holding
After a close examination of the facts and evidence the court held that the oral promise made by Mary to guarantee her husband debt did not represent an enforceable guarantee contract. Thus Mary won the case.
Reasoning
The reasoning of the court is that the status of fraud forbids any promise to pay the debt of another unless it is put in writing, therefore since Gulf Coast failed in providing the evidence of a signed note by Mary promising to pay Glenn’s debts, the agreement stays within the statute
Parties
Plaintiff: Gulf Coast Motors (The Company)
Defendant: Glenn A. Page and Mary R. Page
Glen A Page and Jerry Sellers, the owner of Gulf Coast were friends.
Facts
Glenn A. Page was friend for a long time of Jerry Sellers, an owner of Gulf Coast Motors. Glenn began borrowing money from Gulf Coast Motors on a regular basis for two years. There was no formal loan process. Glenn would sign a ledger where it was written “I agree to pay Jerry Sellers as above”. Glenn made some small payments towards his account attempting to reduce or pay the balance. At the time the money was borrowed Glenn was not working so he had not assets in his own name. Gathered evidence showed that Glenn had a gambling issue. Sellers testified that at the end of the two year period, Mary R. Page, Glenn’s wife orally guaranteed to repay Glenn’s loans. Mary on the contrary had significant assets of her own. Mary denied that she had promised to pay Glenn’s debt. Gulf Coast Motors sued Glenn and his wife Mary to recover payment for the unpaid loans. (Cheeseman, H. Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed). Pearson Learning Solutions)
Procedure
The Court ruled in favor of Gulf Coast Motor entering a judgment in the amount of $23.020. Mary appealed.
Issue
The issue here turns into a simple question: was Mary’s oral promise to guarantee Glenn’s debts an enforceable contract?
Holding
After a close examination of the facts and evidence the court held that the oral promise made by Mary to guarantee her husband debt did not represent an enforceable guarantee contract. Thus Mary won the case.
Reasoning
The reasoning of the court is that the status of fraud forbids any promise to pay the debt of another unless it is put in writing, therefore since Gulf Coast failed in providing the evidence of a signed note by Mary promising to pay Glenn’s debts, the agreement stays within the statute
References: Cheeseman, H. Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed). Pearson Learning Solutions. Retrieved from http://devry.vitalsource.com/books/9781256088080/id/ch14box16 Court of Civil Appeals of Alabama. (2004, December 30). Retrieved from FindLaw for Legal Professionals: http://caselaw.findlaw.com/al-court-of-civil-appeals/1245441.html