Floor v. Melvin

283 N.E.2d 303 (1972)

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Nature of the Case

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Facts

Melco, Inc., acting through its president, Charles W. Melvin, made and issued its negotiable promissory note in the principal amount of $12,000.00, payable to P. On the back of the note the following language appears: 'For and in consideration of funds advanced herein to Melco, Inc., we irrevocably guarantee Marjorie Irene Floor against loss by reason of non-payment of this note.' The signature of Charles W. Melvin, as well as others, appeared below such statement. P’s claim is against the estate of Melvin (D). There was no showing that Melco, Inc. was insolvent. D moved to dismiss for failure to state a cause of action. D contends that P must first sue Melco to collect on the note before P can sue D. D contends that the guarantee on the back is for collection. P contends it represents an absolute undertaking and is a guarantee of payment. D’s motion to dismiss was granted. P appealed.