Opinion ID: 2604306
Heading Depth: 3
Heading Rank: 3

Heading: Liability Limitation

Text: The final issue is whether the $10,000 maximum monthly credit limit on the credit application limits Beck's liability under the guaranty. [3] We hold that it does not. Where the contract between the guarantee and principal debtor limits the obligation of the former to extend credit to the latter up to a specified amount, such limitation does not modify or condition the contract by which the guarantor agrees to guarantee the payment of all credits extended to the debtor, and the liability of the guarantor is not limited to such amount or discharged by the extension of more credit than the amount so specified. Missouri Farmers Ass'n, Inc. v. Coleman, 676 S.W.2d 855, 858 n. 1 (Mo. App. 1984) (quoting 38 C.J.S. Guaranty § 56 at 1211). In the guaranty, Beck agreed to pay White Pass on demand any sum which may become due to White Pass by the company whenever the company shall fail to pay the same. (Emphasis added). The guaranty does not mention the credit application's $10,000 monthly limit. Beck waived any right he may have had to limit his liability by consenting to any modification or renewal of the credit agreement hereby guaranteed. AFFIRMED.