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Unlaub Co. v. Sexton

568 F.2d 72 (1977)

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Unlaub Co. v. Sexton

United States Court of Appeals for the Eighth Circuit

568 F.2d 72 (1977)

Facts

The Unlaub Company, Inc. (Unlaub) (plaintiff) contracted with Paul Rees Coal Company (Rees) for the sale of coal screens to Rees. The contract specified that Rees would take delivery of the screens at the third-party factory where they were to be made. Sam Sexton Jr. (defendant), the president of Rees, personally guaranteed his company’s performance under the contract. Rees made a down payment. However, when Unlaub notified Rees that the screens were ready for pickup, Rees failed to pick them up, reject them as nonconforming goods, or pay the balance due on the contract. Unlaub sued Sexton, as the contract’s guarantor, under Uniform Commercial Code (UCC) § 2-709, the provision authorizing a seller to recover the contract price to which it is entitled. The federal district court awarded summary judgment for Unlaub, and Sexton appealed to the Eighth Circuit.

Rule of Law

Issue

Holding and Reasoning (Van Oosterhout, J.)

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