Sam McAfee was the owner of Farmers Equipment and Supply Company. One of the manufacturers that Sam sold was Derring Equipment. As part of the business arrangement with Derring, Sam signed a guaranty to be responsible for any debt incurred for the sale of the equipment. Getting up in years, Sam decided to sell his business to his son-in-law, Buddy Barnstable. Th e business went well for a while, but in 2005, Buddy decided to close the business. Buddy had purchased some equipment from Derring and still owed a debt on it. He never paid Derring. Derring wanted its money and sues Sam for the debt. Derring claims that Sam guaranteed payment for any outstanding debts. Th e guaranty stated in part: “Th e undersigned agrees to pay for any extension of past/or future credit extended to the debtor on behalf of Farmers Equipment and Supply Corporation.” Th roughout the guaranty, it refers to “the undersigned.” At the bottom of the guaranty, Sam scribbled his signature above the words “guarantor(s)” and over the type word “name.” Also at the bottom was Sam’s address written in his own handwriting. Sam does not remember signing the guaranty. Derring sues Sam under the guaranty. Sam responds by raising the Statute of Frauds as a defense to the guaranty. Which party should win and why? Should the court allow in parol evidence regarding the signature? Use your jurisdiction’s case and statutory law in your response.
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