INDEMNITY FOR DEBT.

New Zealand Herald, Volume LXIII, Issue 19236, 27 January 1926, Page 14

INDEMNITY FOR DEBT.

DAIRY COMPANY'S LIABILITY.

DECISION AT HAMILTON. [by telegraph.—own correspondent. J . HAMILTON. Tuesday." Judgment was given by Mr. Wyvern Wilson, S.M., in the case in which Thomas Westland Buxton (Mr, Tompkins) sued the Waikato Valley Dairy Company, Ltd. (Mr. Strang), for £72 lis 7d, balance of a loan of £2OO alleged to be dtie. The circumstances were that Buxton lent a Mrs. Wallace £2OO on the security of \\ promissory note. Portion of the money was repaid to Buxton by the Dairy Company, who were unsecured creditors of Mrs. Wallace to the extent of £3OO. Plaintiff sought to establish that the Daily Company "had contracted to pay Buxton, and letters were produced in support of this assertion. ; The magistrate said it seemed to him that a valid contract had been entered into between the company and plaintiff, and the defendant company was bound to answer for Mrs. Wallace's debt to the extent of £SO. Indeed, it was not only a guarantee but an indemnity. The magistrate referred to the case of Sutton and Co. v. Grey, in which the question arose whether the party sought to be charged had- an interest in the transaction. The debtor was at the time probably insolvent. The company was an unsecured creditor in the present case, and it was to its "benefit that her business as a dairy farmer should be kept going until the end of the season, when the company's debt would be largely reduced by the debtor's bonus. : Judgment was given for plaintiff for £SO, with costs, £lO 13s.