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Statute of Frauds Question


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Would the Statute of Frauds apply to a contract signed by me for a guaranty for a company. I applied for $5000 with my personal quaranty and the GM for the company called three days later and said they would give my company $2500 credit on my personal guaranty.

Within 2 years the company had 20K plus in credit, I assumed my obligation was null, because of the $2500 cap I agreed to.

CO Statute 4-2-201 Formal requirements-statute of frauds

"but the contract is not enforceable under this paragraph beyond the quantity of goods shown in writing"

I am a co-defendant and would like to use this as a defense.

In your opinion, am I on the right track?

Thanks

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Thanks for the opinion, since you don't think the "Frauds" will work any suggestion for the following,

I am looking for a defense that sums up this thought-

I only signed a guaranty for $5000,$2500 given by phone, the credit was extended to over $20K for the company, since the contract was breached(extension of credit for more than $2500), I am not liable and you can't sue me for the remaining $5700 you say is due.

Also I know this might be out of range of the "consumer" nature of these forums, but does this debt need to be litigated in my county and the county the contract was signed in??

Thanks

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I don't think your defense of "I guaranteed the credit when it was given to me, but I'm only liable for the initial credit limit not what was used after they increased it" will fly.

If they were trying to come after you personally with no guarantee, Statute of Frauds seems to apply here.

Of course maybe 4-2-201 applies here. You should hit a law library and research it to see what you can find.

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Thank you for your inputs.

They actually put a $2500 credit limit on "counter" credit, meaning you come in and buy materials for the company at the sales counter. I have the stamp from the faxed original with the stamp saying "Credit Limit $2500". This is what I agreed to on the phone with the GM.

The GM also told me on the phone credit would be granted to the company(not me)on a per job basis. I also agreed to this. In other words if the job contract was for $50k with $15K materials, the company would have $15k credit for that job.

I did sign the Application and faxed it to them, they put the $2500 credit Stamp on the Application for their own records. This $2500 has long been satisfied.

Another thing, the FDIC Tatelbaum Opinion Letter seems to state to me that "FTC Staff indicated that where and individual is personally liable for repayment of an extension for credit for business purposes, the business transaction may be viewed as involving a consumer",

Will this get me into FDCPA,FCRA protection?

Thanks

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A guarantee falls under the Statute of Frauds to be enforceable. You signed a guarantee, correct? But if you did not limit your guarantee in time or dollar amount, or revoke it at any time during which credit was being extended, then I would say you are liable for the amount they seek.

I asked for and wrote down $5000 in the "Credit Limit Requested" area of the application that I did sign a guarantee on, they Stamped "$2500 Credit Limit" on their copy, which I have.

Does this address that Point?

The extension of credit was supposed to have nothing to do with my guarantee, as I tried to explain above.

Sorry for redundancy.

Thanks

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