Sabra

This is an action on a contract made in June, 1923, between the Dayton Rubber Manufacturing Company, and John Sabra, referred to therein as the “Factor,” and Mrs. Sabra and George J. Wintermute, referred to therein as “Guarantors,” effective when approved by the representative of the company at Dayton, Ohio. By the terms of the contract, the company agreed to ship to Sabra at Phoenix, Ariz., automobile tires for sale by him, in the ordinary course of trade, at not less than invoice prices; the entire proceeds from such sales to be the property of the company, and to be kept by Sabra in a separate fund in trust for it, and cash to the amount of the invoice price to be remitted to it as each sale was made. The contract contains a stipulation that the Guarantors “hereby warrant and guarantee the faithful performance of this contract by the Factor and agree to hold themselves jointly and severally liable to the company for any damages occasioned by the defalcation, misappropriation or conversion by the Factor of the funds, moneys, property or merchandise belonging to or owing to the company.” The contract was signed by all the parties and duly approved by the company.

Soon thereafter…