Opinion ID: 1247936
Heading Depth: 1
Heading Rank: 5

Heading: Representation With Respect to Personal Liability for the Debts of the Corporation

Text: The trial judge found:    On July 28, 1964, the defendant and the plaintiff entered into certain agreements by which the plaintiff agreed to purchase the business property from the defendants' vendor and resell the business property to Yost Brothers Company for the sum of $60,000 under a contract for deed. Another agreement provided that all of the stockholders of Yost Brothers Company, including Robert B. Yost `individually guaranteed the payment of all amounts due Harpels by Yost Brothers and hereby assume personal responsibility and liability for all such indebtedness.'       It should be noted that the agreement containing the individual guarantee of the shareholders of Yost Brothers Company has been signed in behalf of the defendant Robert B. Yost, by Robert B. Yost personally and by Bonnie E. Yost. The record does not indicate what interest as a shareholder was held by Bonnie E. Yost and it further appears that the one-third owner or shareholder, Mr. Cheladyn did not sign the agreement. At the time that the agreement was signed, Robert B. Yost apparently held two-thirds of the shares of Yost Brothers Company. The agreement recites that Bonnie E. Yost is a shareholder of Yost Brothers, Inc.       Robert B. Yost continuously extended to plaintiff his personal guarantee for the corporation's debts after John Harpel became personally involved in the supervision of credit with Robert B. Yost.