Sapp

The question on this appeal is whether a certain contract of guaranty covered indebtedness incurred after the date the contract bears (September 1, 1959) or only after the date it was actually signed (April 1, 1960). We hold that the earlier date applies.

In August or September 1959, Jim Dowd, vice-president and one of the owners of the two plaintiff corporations (hereinafter collectively called “Steiner”), appellants in this court, discussed future sales of lumber to defendant corporation (hereinafter called “Rancho”) with William Dacy, an officer of the latter corporation. Dowd stated to Dacy it was the usual practice of Steiner to require a written guaranty of the account by the principals of a purchasing corporation. Dacy assured Dowd “there would be no problem” but that it would be impossible to obtain the signature of defendant David M. Sapp (respondent on this appeal), an officer and principal shareholder of Rancho, until the latter's return from a European trip.

On or about April 1, 1960, a meeting took place at the Sacramento airport between Sapp, Dacy and John Binder, the secretary-treasurer of Steiner. Prior to that meeting no guaranty had been signed. In the meantime…