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Commercial Law Keyed to Whaley
Floor v. Melvin
Citation:
5 Ill. App. 3d 463, 283 N.E.2d 303 (1972)Facts
On April 14, 1959, Melco, Inc., an Illinois corporation, acting through its president, Defendant, made and issued its negotiable promissory note in the principal amount of $12,000, payable to Plaintiff. On the back of the note was a statement guaranteeing the note, signed by Defendant and others. The statement read, “For and inconsideration of funds advanced herein to Melco, Inc., we irrevocably guarantee Majorie Irene Floor against loss by reason of nonpayment of this note.” Plaintiff sued Defendant’s estate after he died to collect on the guarantee of the note. The trial court found in favor of Defendant, as Defendant had signed a guarantee of collection and Plaintiff had failed to first pursue Melco, Inc., the issuer of the note. Plaintiff admitted that it never attempted to sue Melco, Inc. to collect on the note, nor did Plaintiff aver that Melco, Inc. was insolvent and incapable of paying on the note. Plaintiff appealed the decision to the Illinois Appellate Court.
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