Peskin

Plaintiff appeals from a judgment in his favor in the sum of $573.01 and attorney fees of $114.60 arising out of a contract for the factoring of accounts receivable, the performance of which contract was guaranteed by the defendants.

Plaintiff, doing business as Aetna Factors Company, was in the business of factoring accounts receivable. On December 13, 1957, plaintiff entered into an agreement with Mansion House Furniture Co., Inc., for the factoring of the latter’s accounts receivable. This agreement was supplemented by a letter bearing the same date which provided that plaintiff would loan Mansion House up to $35,000 to cover Mansion House’s cash needs. The defendants, Darryl W. Herron, Judi Parks Herron and William Parks, executed an agreement whereby they guaranteed performance by Mansion House of its covenants, conditions and obligations under the factoring agreement. It is this guaranty agreement upon which the liability of defendants is sought to be established.

Mansion House agreed that if any unapproved account was not paid by the debtor when due, Mansion House would repurchase the account at the option and upon the demand of plaintiff. Mansion House represented to…