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Yarbro v. Neil B. McGinnis Equip. Co.
Supreme Court of Arizona
101 Ariz. 378 (1966)
Beuford Yarbro (defendant) had sought to purchase a tractor from the McGinnis Equipment Co. (plaintiff), and McGinnis denied financing Yarbro because of Yarbro’s unacceptable credit. Yarbro convinced Russell to buy the tractor instead and Russell entered a 23-month installment contract with McGinnis for the tractor. After Russell failed to pay several monthly installments to McGinnis, Yarbro agreed to help pay the deficiency of Russell’s account. After a couple returned checks for insufficient funds, McGinnis attempted to repossess the tractor. Yarbro promised to pay the amount owed on the tractor if McGinnis did not repossess the tractor. After another failed payment, McGinnis repossessed the tractor and brought action to recover payments due under the sales contract. A default judgment was entered against Russell, and the trial court found Yarbro liable for the entire $8,751.95 balance under the contract. The case is on appeal from the trial court.
Rule of Law
Holding and Reasoning (Bernstein, J.)
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